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) $ 3, 024, 000 Variable costs (10,800 units at $210 each) 2, 268, 000 Contribution margin $ 756,900 Fixed costs 567, 000 Income $ 189,000 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 Required 2 Required 3 Compute the company's degree of operating leverage. Note: Round your answer to 1 decimal place. Degree of operating leverage Required 1 Required 2 Required 3 If sales decrease by 5% in the next year, what will be the company's income? Income Required 1 Required 2 Required 3 Prepare a contribution margin income statement for the next year assuming saies decrease try 5%. WW Contribution margin = Fixed costs 6? [Jun Income {56? 000)