Refer to the information in Exercise 21-16. 1. Compute the companys degree of operating leverage for 2019.
Question:
Refer to the information in Exercise 21-16.
1. Compute the company’s degree of operating leverage for 2019.
2. If sales decrease by 5% in 2020, what will be the company’s pretax income?
3. Assume sales for 2020 decrease by 5%. Prepare a contribution margin income statement for 2020.
Data from Exercise 21-16
Hudson Co. reports the contribution margin income statement for 2019 below.
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