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If sales decrease by 5% in the next year, what will be the company's income? Compute the company's degree of operating leverage. (Round your answer to 1 decimal place.) Hudson Company reports the following contribution margin income statement. 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%. \begin{tabular}{|l|l|} \hline \multicolumn{1}{|c|}{ HUDSON COMPANY } \\ \multicolumn{1}{|c|}{ Contribution Margin Income Statement } \\ For Year Ended December 31 \\ \hline Sales \\ \hline Variable costs & \\ \hline Contribution margin & \\ \hline Fixed costs & \\ \hline Income & $ \\ \hline \end{tabular}