Your answer is partially correct. The CVP income statements shown below are available for Armstrong Company and Contador Company. Sales Variable costs Contribution margin Fixed costs Armstrong Co. $505,000 247,000 258,000 158,000 $100,000 Contador Co. $505,000 49,000 456,000 356,000 $100,000 Net income (a1) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, e.g. 1.15.) Degree of Operating Leverage 2.58 Armstrong Contador 4.56 (b) Assuming that sales revenue increases by 10%, prepare a variable costing income statement for each company. (a1) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, e.g. 1.15.) Degree of Operating Leverage Armstrong 258 Contador 5) Assuming that sales revenue increases by 10%, prepare a variable costing income statement for each company. Armstrong Company Sales Revenue Contador Company $ $ 555000 Variable Costs $ 555000 Contribution Margin Fixed Costs 15800 Net Income/(Loss) $ $ eTextbook and Media ave for Later Attempts: 3 of 7 used Submit Answ Show Attempt History Current Attempt in Progress Your answer is partially correct The CVP income statements shown below are available for Armstrong Company and Contador Company. Sales Variable costs Contribution margin Fixed costs Net income Armstrong Co. $505,000 247.000 258,000 158,000 $100,000 Contador Co. $505,000 49,000 456,000 356,000 $100,000 (a1) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, e.g. 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. 20