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Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (10,800 units at

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Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (10,800 units at $280 each) Variable costs (10,800 units at $210 each) Contribution margin Fixed costs Income 1. Compute the company's degree of operating leverage. $ 3,024,000 2,268,000 $ 756,000 567,000 $ 189,000 2. If sales decrease by 5% in the next year, what will be the company's income? 3. Prepare a contribution margin income statement for the next year assuming sales decrease by 5%. Complete this question by entering your answers in the tabs below. Required 1 Required 21 Required 3 If sales decrease by 5% in the next year, what will be the company's income?

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