Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (9,600 units at $225 each) Variable costs (9,600 units at $180 each) Contribution margin Fixed costs Income 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. $ 2,160,000 1,728,000 $ 432,000 324,000 $ 108,000 Degree of operating leverage Required 1 Required 2

Hudson Company reports the following contribution margin income statement. 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, Compute the company's degree of operating leverage. Hudson Company reports the following contribution margin income statement. 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, If sales decrease by 5% in the next year, what will be the company's income? Prepare a contribution margin income statement for the next year assuming sales decrease by 5%