Arnold Vimka is a venture capitalist facing two alternative investment opportunities. He intends to invest $1 million in a startup firm. He is nervous, however, about future economic volatility. He asks you to analyze the following nancial data for the past year's operations of the two firms he is considering and give him some business advice Company Name Larson Benson Variable cost per unit (a) $ 19.00 $ 9.50 Sales revenue (8,600 units x $30.00) $ 258,000 $ 258,000 Variable cost (8,600 units x a) (163,400) (81,700) Contribution margin 3; 94,600 $ 176,300 Fixed cost (24,500) (106,200) Net income $ 70,100 $ 70,100 Required 3. Use the contribution margin approach to compute the operating leverage for each firm. b. lfthe economy expands in coming years, Larson and Benson will both enjoy a 11 percent per year increase in sales, assuming that the selling price remains unchanged. Compute the change in net income for each firm in dollar amountand in percentage. (Note: Since the number of units increases, both revenue and variable cost will increase.) lfthe economy contracts in coming years, Larson and Benson will both suffer a 11 percent decrease in sales volume, assuming that the selling price remains unchanged. Compute the change in net income for each firm in dollar amountand in percentage. (Note: Since the number of units decreases, both total revenue and total variable cost will decrease.) Complete this question by entering your answers in the tabs below. Required A Required B Required C Use the contribution margin approach to compute the operating leverage for each firm. (Round your answers to 2 decimal places.)