Help System Announcements Sales Variable costs Contribution margin Fixed costs $490,000 247,000 243,000 143,000 $100,000 $490,000 45,000 445,000 345,000 $100,000 Net income (al) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, e.g. 1.15.) Degree of Operating Leverage Armstrong 3.038 Contador 5.563 (b) Assuming that sales revenue increases by 10%, prepare a variable costing income statement for each company. Armstrong Company Contador Company Selling Expenses 539000 539000 $ Variable Costs 271700 49500 Contribution Margin 267300 48500 Fixed Costs 163000 365000 Net Income/(Loss) 104300 124500 Click if you would like to Show Work for this question: Open Show Work nd Windows 01