Hudson Co. reports the contribution margin income statement for 2017.

5 Saved Exercise 5-25 Degree of operating leverage LO A2 Hudson Co. reports the contribution margin income statement for 2017 HUDSON CO Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (10,880 units at $280 each) Variable costs (10,800 units at $210 each) Contribution margin Fixed costs Pretax income $3,024,000 2,268,000 756,000 567,000 S 189,000 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 1 Required 2 Required 3 Compute the company's degree of operating leverage for 2017. (Round your answer to 1 decimal place.) egree of operating everage Sales (10,800 units at $288 each) Variable costs (18,880 units at $210 each) Contribution margin Fixed costs Pretax income $3,824,968 2,268,000 $756,000 567,000 $ 189,800 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 1 Required 2 Required 3 If sales decrease by 5% in 2018, what will be the company's pretax income? Required 1 Pequired 3> r 31, 201/ Sales (10,880 units at $288 each) Variable costs (18,800 units at $210 each) Contribution margin Fixed costs Pretax income $3,824,000 2,268,088 756,000 567,000 S 189,000 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 1Required 2 Required 3 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)