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

$($a$1)$ Compute the degree of operating leverage for each company. $($Round answers to $2$ decimal places, eg$.1\mathrm{.}15.)$

Degree of Operating Leverage

Armstrong

Contador

$($b$)$ Assuming that sales revenue increases by $10\%,$ prepare a variable costing income statement for each company.