Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (8,600 units at $240 each) Variable costs (8,600 units at $180 each) Contribution margin Fixed costs Income 1. Compute the company's degree of operating leverage. $ 2,064,000 1,548,000 $ 516,000 387,000 $ 129,000 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 > 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 < Required 1 Required 3 > 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 < Required 2 Required 3