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Exercise 6-14 al, b (Video) The CVP income statements shown below are available for Armstrong Company and Contador Company. Contador Co. Sales Variable costs Armstrong

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Exercise 6-14 al, b (Video) The CVP income statements shown below are available for Armstrong Company and Contador Company. Contador Co. Sales Variable costs Armstrong Co. $502,000 250,000 252,000 152,000 $100,000 Contribution margin Fixed costs $502,000 49,000 453,000 353,000 $100,000 Net income (al) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, e.g. 1.15.) Degree of Operating Leverage Armstrong Contador (b) Assuming that sales revenue increases by 10%, prepare a variable costing income statement for each company. Armstrong Company Contador Company $ $

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