The CVP income statements shown below are available for Armstrong Company and Contador Company Armstrong Co. Contador Co. Sales $500,000 $500,000 240,000 Variable costs 50,000 Contribution margin 260,000 450,000 Fixed costs 160,000 350,000 $100,000 $100,000 Net income Degree of operating leverage for each company is as follows: Degree of Operating Leverage Armstrong 2.6 Contador 4.5 Assuming that sales revenue increases by 10%, the variable costing income statement for each company is as follows: Contador Company Armstrong Company $550,000 Sales Revenue $550,000 264,000 55,000 Variable Costs Contribution Margin 495,000 286,000 350,000 160,000 Fixed Costs $126,000 $145,000 Net Income Discuss the differences in operating leverage for the two companies. LINK TO TEXT Discuss how the cost structure of these two companies affects their operating leverage and profitability