Hudson co. reports the contribution margin income statement for 2017. hudson co. contribution margin income statement for year ended december 31, 2017 sales (10,500 units at $225 each) $ 2,362,500 variable costs (10,500 units at $180 each) 1,890,000 contribution margin $ 472,500 fixed costs 315,000 pretax income $ 157,500 1. compute the company’s degree of operating leverage for 2017. 2. if sales decrease by 4% in 2018, what will be the company’s pretax income? 3. assume sales for 2018 decrease by 4%. prepare a contribution margin income statement for 2018.

During march, the business engaged in the following transactions: a. borrowed $45,000 from the bank and signed a note payable in the name of the business. b. paid cash of $40,000 to acquire land. c. performed service for a customer and received cash of $5,000. d. purchased supplies on account, $300. e. performed customer service and earned revenue on account, $2,600. f. paid $1,200 on account. g. paid the following cash expenses: salaries, $3,000; rent, $1,500; and interest, $400. h. received $3,100 on account. i. received a $200 utility bill that will be paid next week. j. paid cash dividends of $1,800. required: 1.) prepare journal entries for each transaction. enter journal entries by the transaction letter. 2.) prepare the trial balance of my motors, inc. at march 31, 20xx. 3.) prepare financial statements for my motors, inc. for the period ending march 31, 20xx. (income statement and balance sheet)