The CVP income statements shown below are available for Armstrong Company and Contador Company. Armstrong Co. Contador Co. Sales $494,000 $494,000 Variable costs 233,000 45,000 Contribution margin 261,000 449,000 Fixed costs 161,000 349,000 Net income $100,000 $100,000 (a1) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, eg. 1.15.) Armstrong Contador Degree of Operating Leverage (b) Assuming that sales revenue increases by 10%, prepare a variable costing income statement for each company. Contribution Margin Net Income/(Loss) Administrative Expenses) Variable Costs Gross Profit Selling Expenses Cost of Goods Sold Total Fixed Expenses Total Variable Expenses Fixed Costs Sales Revenue Armstrong Company Contador Company $