Exercise 19-14 (Part Level Submission)

The CVP income statements shown below are available for Armstrong Company and Contador Company.

		Armstrong Co.		Contador Co.
Sales		$602,000		$602,000
Variable costs		278,900		76,200
Contribution margin		323,100		525,800
Fixed costs		167,600		370,300
Net income		$155,500		$155,500

(a)

Compute the degree of operating leverage for each company. (Round answers to 3 decimal places, e.g. 1.150.)

		Degree of Operating Leverage
Armstrong
Contador