5 of 5 The CVP income statements shown below are available for Armstrong Company and Contador Company. Armstrong Co. Contador Co. Sales $507,000 $507,000 Variable costs 234,000 51,000 Contribution margin 273,000 456,000 Fixed costs 173,000 356,000 Net income $100,000 $100,000 (a1) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, e.g. 1.15.) Armstrong Degree of Operating Leverage Contador -/2 (b) Assuming that sales revenue increases by 10%, prepare a variable costing income statement for each company. $ Armstrong Company Contador Company eTextbook and Media