Check my work Arnold Vimka is a venture capitalist facing two alternative investment opportunities. He intends to invest $1,000,000 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 (6.700 units 51.00) Variable cost (0,700 units) Contribution margin Fixed cost Net Income Larson Benton $10.00 5.26.700 $ 269,700 186500) 1020 $ 11,400 $ 187,050 5.000) (18765 $ 79,400 579,400 Required a. Use the contribution marginapproach to compute the operating leverage for each firm b. If the economy expands in coming years Larson and Benson will both enjoy a 12 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 (Nore Since the number of units increases both revenue and variable cost wit increase c. If the economy contracts in coming years Larson and Benson we both suffer a 12 percent decrease in sales volume, assuming that the selling price remains unchanged. Compute the change in net income for each firm in dodamount and percentage Note Since the number of units decreases, both total revenue and total variable cost will decrease) Check my work Required A Required B Tequired If the economy expands in coming years, Larson and Benson will both enjoy a 12 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) (Negative values should be indicated with a minus sign. Round Percentage change to 2 decimal places) Show less Company Name Larson Benson $ 19.00 5 9.50 0 0 Variable cost per unit Sales revenue Variable cost Contribution margin Fred cost Not income Percentage change $ 0 5 Check my work Required A Required B Required If the economy contracts in coming years, Larson and Benson will both suffer a 12 percent decrease in sales volume, 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 decreases, both total revenue and total variable cost will decrease) (Negative values should be indicated with a minus sign. Round Percentage change" to 2 decimal places) a Show less Company Name Larson Benson Variable cost per unit Sales revenue Variable cost Contribution margin Fixed cost Net income Percentage change 0 0 $ 0 S 0