Current Attempt in Progress

Your answer is partially correct.

The single$-$column 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, e$.$g$.1\mathrm{.}15.)$

Degree of Operating Leverage

Armstrong

Contador

$($b$)$ Assuming that sales revenue increases by $10\%($due to a $10\%$ increase in the number of units sold$),$ prepare a single$-$column CVP

income statement for each company.

Armstrong Company

$

Contribution Margin

Net Income$/($Loss$)$