Question 5 of 6 - / 10 View Policies Current Attempt in Progress The CVP income statements shown below are available for Armstrong Company and Contador Company Armstrong Co. Contador Co. Sales $500,000 $500,000 Variable costs 240.000 50,000 Contribution margin 260,000 450,000 350,000 Fixed costs 160,000 Net income $100,000 $100,000 (1) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places 1.15) Fixed costs 160,000 Net income 350,000 $100,000 $100,000 (a1) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places eg 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 Contador Company Armstrong Company Contador Questi. Questi b) Assuming that sales revenue increases by 10% prepare a variable costing income statement for each company Viewing Armstrong Company Contador Company Question Textbook and Media Attempts of one