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Sunn Company manufactures a single product that sells for $208 per unit and whose variable costs are $156 per unit. The company's annual fixed costs are $806,000. Management targets an annual income of $1,300,000. (1) Compute the unit sales to earn the target income. Numerator: Denominator: = Units to Achieve Target Units to achieve target / = 0 (2) Compute the dollar sales to earn the target income. Numerator: Denominator: = Dollars to Achieve Target Dollars to achieve target / = 0 Harrison Company expects to sell 260,000 units of its product next year, which would generate total sales of $23,660,000. Management predicts that income for next year will be $1,310,000 and that the contribution margin per unit will be $19. Complete the below table to calculate the next year's expected variable costs and fixed costs. HARRISON COMPANY Forecasted Contribution Margin Income Statement Units $ per unit 260,000 Contribution margin $ 19 0 Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (10,000 units at $225 each) Variable costs (10,000 units at $180 each) Contribution margin Fixed costs $ 2,250,000 1,800,000 $ 450,000 360,000 $ 90,000 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. Required 1 Required 2 Required 3 Compute the company's degree of operating leverage. (Round your answer to 1 decimal place.) Degree of operating leverage Required 1 Required 2 > Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (10,000 units at $225 each) Variable costs (10,000 units at $180 each) Contribution margin Fixed costs $ 2,250,000 1,800,000 $ 450,000 360,000 $ 90,000 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. Required 1 Required 2 Required 3 If sales decrease by 5% in the next year, what will be the company's income? Income Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (10,000 units at $225 each) Variable costs (10,000 units at $180 each) Contribution margin Fixed costs $ 2,250,000 1,800,000 $ 450,000 360,000 $ 90,000 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. Required 1 Required 2 Required 3 Prepare a contribution margin income statement for the next year assuming sales decrease by 5%. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales Variable costs Contribution margin 0 Fixed costs Income $ 0

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