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) $2,250,000 Variable costs (10,000 units at $180 each) 1,800,000 Contribution margin $450,000 Fixed costs 360,000 Income $90,000 Compute the company's degree of operating leverage. If sales decrease by 6% 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 6%. Complete this question by entering your answers in the tabs below. Compute the company's degree of operating leverage. Note: Round your answer to 1 decimal place. Degree of operating leverage

1. Compute the company's degree of operating leverage. 2. If sales decrease by 6% 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 6%. Complete this question by entering your answers in the tabs below. Compute the company's degree of operating leverage. Note: Round your answer to 1 decimal place