Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (10,000 units at $225 each) Variable costs (10,000 units at $180 each) Contribution margin Fixed costs 3:52 Income $ 2,250,000 1,800,000 $ 450,000 360,000 $ 90,000 K 1. Compute the company's degree of operating leverage. 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 Rired 2 Required 3 ces Compute the company's degree of operating leverage. (Round your answer to 1 decimal place.) Degree of operating leverage