Hudson Co. reports the contribution margin income statement for 2017 HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (11,000 units at $300 each) Variable costs (11,000 units at $240 each) Contribution margin Fixed costs Pretax income $3,300,000 12.640,000 $ 650 000 360.000 300,000 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.) Degree of operating leverage Required 1 Required 2 Required 3 If sales decrease by 5% in 2018, what will be the company's pretax income? Pretax income HUDSON CO. Forecasted Contribution Margin Income Statement For Year Ended December 31, 2018 Sales Variable costs Contribution margin Fixed costs Income (pretax)