E6.14 (LO 4), AN The single-column CVP income statements shown below are available for Armstrong Company and Contador Company. Armstrong Co. Contador Co. Instructions Sales Variable costs $500,000 $500,000 240,000 50,000 Contribution margin Fixed costs Net income 260,000 450,000 160,000 350,000 $100,000 $100,000 a. Compute the degree of operating leverage for each company and interpret your results. b. Assuming that sales revenue increases by 10%, restate the single-column CVP income statement from above for each company. c. Discuss how the cost structure of these two companies affects their operating leverage and profitability