Current Attempt in Progress The CVP income statements shown below are available for Armstrong Company...
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Current Attempt in Progress The CVP income statements shown below are available for Armstrong Company and Contador Company. Sales Variable costs Contribution margin Fixed costs Net income Armstrong Co. Contador Co. $503.000 $503.000 248.000 46.000 255.000 457.000 155,000 357,000 $100.000 $100.000 (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 Contador (b) Assuming that sales revenue increases by 10%, prepare a variable costing income statement for each company. Armstrong Company Contador Company
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