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 $375 each) Variable costs (10,800 units at $300 each) Contribution margin Fixed costs Income $ 4,050,000 3,240,000 $ 810,000 660,000 $ 150,000 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. (Round your answer to 1 decimal place.) Degree of operating leverage Required 1 Required 2 > 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 $375 each) Variable costs (10,800 units at $300 each) Contribution margin Fixed costs $ 4,050,000 3,240,000 $ 810,000 660,000 $ 150,000 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 If sales decrease by 5% in the next year, what will be the company's income? Income 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 $375 each) Variable costs (10,800 units at $300 each) Contribution margin Fixed costs Income $ 4,050,000 3,240,000 $ 810,000 660,000 $ 150,000 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 Prepare a contribution margin income statement for the next year assuming sales decrease by 5%. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales Variable costs Contribution margin Fixed costs Income