Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (11,000 units at $300 each) $ 3,300,000 Variable costs (11,000 units at $240 each) 2,640,000 Contribution margin $ 660,000 Fixed costs 360,000 Income $ 300,000 1. Compute the companys degree of operating leverage. 2. If sales decrease by 5% in the next year, what will be the companys income? 3. Prepare a contribution margin income statement for the next year assuming sales decrease by 5%