Question 9 of 11 0.41 / 1 Your answer is partially correct. The CVP income statements shown below are available for Armstrong Company and Contador Company Armstrong Co. $492,000 Contador Co. $492,000 Sales Variable costs 50,000 Contribution margin 250,000 242,000 142,000 442,000 Fixed costs 342.000 $100,000 Net income $100,000 (21) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, es 1.15.) Degree of Operating Leverage Armstrong 2.42 Contador 4.42 (b) Assuming that sales revenue increases by 10%, prepare a variable costing income statement for each company, Armstrong Company Contador Company 0.4 (1) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, e.g. 1.15.) Degree of Operating Leverage Armstrong 2.42 Contador 4.42 (b) Assuming that sales revenue increases by 10%, prepare a variable costing income statement for each company, Armstrong Company Contador Company Sales Revenue $ Variable Costs Contribution Margin HITTA Fixed Costs $ Net Income/(Loss) e Textbook and Media