Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement...

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Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (10,800 units at $280 each) Variable costs (10,800 units at $210 each) Contribution margin $3,024,000 2,268,000 $ 756,000 567,000 Fixed costs Pretax income $ 189,000 1. Compute the company's degree of operating leverage for 2019. 2. If sales decrease by 5% in 2020, what will be the company's pretax income? 3. Assume sales for 2020 decrease by 5%. Prepare a contribution margin income statement for 2020. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compu the com degree of operating leverage for 2019. (Round your answer to 1 decimal place.) Degree of operating leverage < Required 1 Required 2 > Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (10,800 units at $280 each) Variable costs (10,800 units at $210 each) Contribution margin $3,024,000 2,268,000 $ 756,000 567,000 Fixed costs Pretax income $ 189,000 1. Compute the company's degree of operating leverage for 2019. 2. If sales decrease by 5% in 2020, what will be the company's pretax income? 3. Assume sales for 2020 decrease by 5%. Prepare a contribution margin income statement for 2020. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compu the com degree of operating leverage for 2019. (Round your answer to 1 decimal place.) Degree of operating leverage < Required 1 Required 2 >

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Solution 1 Degree of operating leverage Contribution marginEBIT 7... View the full answer