Hudson Co. reports the contribution margin income statement for 2017. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (10,800 units at $375 each) $4,050,000 Variable costs (10,800 units at 3,240,000 $300 each) Contribution margin $ 810,000 Fixed costs 660,000 Pretax income $ 150,000 1. Compute the company's degree of operating leverage for 2017 2. If sales decrease by 5% in 2018, what will be the company's pretax income? 3. Assume sales for 2018 decrease by 5%. Prepare a contribution margin income statement for 2018. Complete this question by entering your answers in the tabs below. Required Required Required | 2 | 3 Compute the company's degree of operating leverage for 2017. (Round your answer to 1 decimal place.) Degree of operating leverage Required Required Required 2 3 If sales decrease by 5% in 2018, what will be the company's pretax income? Pretax income Required Required Required Assume sales for 2018 decrease by 5%. Prepare a contribution margin income statement for 2018. HUDSON CO. Forecasted Contribution Margin Income Statement For Year Ended December 31, 2018 Sales Variable costs Contribution margin Fixed costs Income (pretax)