Question 1 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 $495,000 233,000 262,000 160,000 $102,000 $495,000 48,000 447,000 345,000 $102,000 (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