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Hudson Company reports the following contribution margin income statement. Sales (10,800 units at $280 each) Variable costs (10,800 units at $210 each) Contribution margin Fixed costs Income HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 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. $ 3,024,000 2,268,000 $ 756,000 567,000 $ 189,000 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 >
05 Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Incone Statement For Year Ended December 21 Sales (10, 800 units at $280 each) Variable costs (10,800 units at $210 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%. $ 3,024,000 2,268,000 $750,000 567,000 $ 189,000 Complete this question by entering your answers in the tabs below. Require Required 2 Required 3 Compute the company's degree of operating leverage. (Round your answer to 1 decimal place.) 1 Required 2 >