Question 3 Your answer is partially correct. Try again. The CVP income statements shown below are available for Armstrong Company and Contador Company. Armstrong Co. Contador Co. Sales Variable costs Contribution margin $503,000 248,000 255,000 155,000 $100,000 $503,000 46,000 457,000 357,000 $100,000 Fixed costs 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 Armstrong 2.55 Contador 4.57 (b) Assuming that sales revenue increases by 10%, prepare a variable costing income statement for each company. Armstrong Company Contador Company Sales Revenue 553300 553300 $