Arnold Vimka is a venture capitalist facing two alternative investment opportunities. He intends to invest $1 million in a start-up firm. He is nervous, however, about future economic volatility. He asks you to analyze the following financial data for the past year's operations of the two firms he is considering and give him some business advice Variable cost per unit (a) Sales revenue (8,100 units $29.ee) Variable cost (8,100 untsxa) Contribution murgin Facult Nel loco Crate Larson Densor 20.00 $110.00 $ 214,00 5 234.900 (162000) 21.00 $72,00 15) (24,100 203 $ 49,800 $48.00 Required a. Use the contribution margin approach to compute the operating everage for each firm b. If the economy expands in coming years, Larson and Benson will both enjoy a 11 percent per year increase in sales, assuming that me seling price remains unchanged. Compute the change in net income for eachim in borar amount and in percentage. (Note: Since the number of units increases, both revenue and variable cost wincrease the economy contracts in coming years. Lorson and Benson will both sutter percent decrease in sales voure, assuming that the rolling once remains unchanged. Compute the change in het Income Por esch tin in dote amount and in cap.NO Since the number of units decreases both total revenue and total variable ! Il dettease uriyeu. Lupute uie criange in net income for each Since the number of units decreases, both total revenue and total variable cost wil ht ) ences 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. places.) Company Name Operating leverage Larson 1.49 Benson 3.15 Required B > If the 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 amount and in percentage. (Note: Since the number of units increases, both revenue and variable cost will increase.) (Round "Percentage answer to 2 decimal place (i...2345 should be entered as 23.45). Round final answers to nearest whole dollar) Show less $ Company Name Larson Benson 2000 S 1000 350.001 74.571 241.380 25,714 Variable cost per unit Sales revenue Variable cost Contribution margin Fbed cost Net income Percentage charge