Section Two: Problem Solving Questions Question One (12 Marks) The following Contribution Margin format income statements are available for Antique Company and Contemporary Company. Contemporary Company $700,000 140,000 560,000 360.000 $200.000 Antique Company $700,000 350,000 350,000 150,000 $200,000 Sales revenue Variable costs Contribution margin Fixed costs Net income Instructions (a) Compute the degree of operating leverage for each company (b) Which company would you expect to be more risky? Explain your answer. (c) Assume that sales revenue increases by 20%. Prepare a Contribution Margin Forma income statement for each company