Exercise 6-14 The CVP income statements shown below are available for Armstrong Company and Contador Company Armstrong Co Contador Co. Sales Variable costs Contribution margin Fixed costs Net income $492,000 250,000 242,000 156,000 $86,000 $492,000 50,000 442,000 356,000 $86,000 (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 (b) Assuming that sales revenue increases by 10%, prepare a variable costing income statement for each company. Armstrong Company Contador Company