Hudson Company reports the following contribution margin income statement.HUDSON COMPANYContribution Margin Income StatementFor Year Ended December 31Sales (9,600 units at $225 each)Variable costs (9,600 units at $18e each)Contribution marginFixed costs$ 2,160,0001,728,000$ 432,000324,000$ 188,000Income1. Compute the company's degree of operating leverage.2. If sales decrease by 5% in the next year, what will be the company's income?3. Prepare a contribution margin income statement for the next year assuming sales decrease by 5%.Complete this question by entering your answers in the tabs below.Required 1Required 2Required 3Compute the company's degree of operating leverage.Degree of operating leverage< Required 1Required 2 >Required 1Required 2Required 3If sales decrease by 5% in the next year, what will be the company's income?Income< Required 1Required 3 >Complete this question by entering your answers in the tabs below.Required 1Required 2Required 3Prepare a contribution margin income statement for the next year assuming sales decrease by 5%.HUDSON COMPANYContribution Margin Income StatementFor Year Ended December 31SalesVarlable costsContribution marginFixed costsIncome< Required 2Required 3>

Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (9,600 units at $225 each) Variable costs (9,600 units at $18e each) Contribution margin Fixed costs $ 2,160,000 1,728,000 $ 432,000 324,000 $ 108,000 Income 1. Compute the company's degree of operating leverage. 2. If sales decrease by 5% in the next year, what will be the company's income? 3. Prepare a contribution margin income statement for the next year assuming sales decrease by 5%. Complete this question by entering your answers in the tabs below.

Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (9,600 units at $225 each) Variable costs (9,600 units at $18e each) Contribution margin Fixed costs $ 2,160,000 1,728,000 $ 432,000 324,000 $ 108,000 Income 1. Compute the company's degree of operating leverage. 2. If sales decrease by 5% in the next year, what will be the company's income? 3. Prepare a contribution margin income statement for the next year assuming sales decrease by 5%. Complete this question by entering your answers in the tabs below.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Subject:- Accounting
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H1.