Exercise 18-25 (Algo) Computing and analyzing operating leverage LO A2Hudson Company reports the following contribution margin income statement.HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (10,400 units at $300 each) $ 3,120,000 Variable costs (10,400 units at $240 each) 2,496,000 Contribution margin $ 624,000 Fixed costs 468,000 Income $ 156,000 Compute the company's degree of operating leverage.If sales decrease by 5% in the next year, what will be the company's income? Prepare a contribution margin income statement for the next yea,r assuming sales decrease by 5%