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The CVP income statements shown below are available for Armstrong Company and Contador Company. The CVP income statements shown below are available for Armstrong Company

The CVP income statements shown below are available for Armstrong Company and Contador Company.

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The CVP income statements shown below are available for Armstrong Company and Contador Company Armstron Sales Variable costs Contribution margin Fixed costs Net income $490,000 230,000 260,000 155,000 $105,000 $490,000 45,000 445,000 340,000 $105,000 (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 Armstronq Company Contador Compan

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