Answer Happy

The CVP Income statements shown below are available for Armstrong Company and Contador Company. Sales Variable costs Contribution margin Fixed costs Net income Armstrong Armstrong Co. Contador $494,000 233,000 261,000 161,000 Contribution Margin Net Income/(Loss) Administrative Expenses. Variable Costs Gross Profit Selling Expenses Cost of Goods Sold Total Fixed Expenses Total Variable Expenses Fixed Costs Sales Revenue $100,000 Contador Co. $494,000 $ 45,000 (a1) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, eg. 1.15.) Degree of Operating Leverage 449,000 349,000 $100,000 (b) Assuming that sales revenue increases by 10%, prepare a variable costing income statement for each company. Contador Company Armstrong Company 1$ S

The CVP income statements shown below are available for Armstrong Company and Contador Company. Sales Variable costs Contribution margin Fixed costs Net income Armstrong Armstrong Co. Contador $494,000 233,000 261,000 161,000 $100,000 Contador Co. $494,000 45,000 $ 449,000 (a1) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, eg 1.15.) Degree of Operating Leverage 349,000 $100,000 (b) Assuming that sales revenue increases by 10% prepare a variable costing income statement for each company. Armstrong Company NU S Contador Company