Question: Hudson Co. reports the contribution margin income statement for 2017. HUDSON Co. Contribution Margin Income Statement 2017 Sales (10,880 units at $280 each) Variable costs
Hudson Co. reports the contribution margin income statement for 2017. HUDSON Co. Contribution Margin Income Statement 2017 Sales (10,880 units at $280 each) Variable costs (10,800 units at $210 each) Contribution margin Fixed costs Pretax income 2,268,000 756,000 567,000 189,eee 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
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