View Policies Current Attempt in Progress The CVP income statements shown below are available for Armstrong Company and Contador Company Contador Co. Sales Variable costs Contribution margin Fixed costs Net income Armstrong Co. $496,000 239,000 257,000 157,000 $100,000 $496,000 47,000 449,000 349,000 $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. Armstrong Company Contador Company $ 23.UUU Contribution margir Fixed costs 44,000 349.000 157,000 $100,000 Net income $100,000 (1) 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. Armstrong Company Contador Company $ $ $ $ $