Question: 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

Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO.

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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