Palvo Sorokin 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 Company Name Wood Lake Variable cost per unit (a 16.00 8.00 Sales revenue (8,000 units x $25) 200,000 $200,000 Variable cost (8,000 units x a (128,000) (64,000) 72,000 $136,000 Contribution margin Fixed cost (24,000) (88,000) Net income 48,000 48,000 Required a. Use the contribution margin approach to compute the operating leverage for each firm. (Round your answers to 2 decimal places e., 0.2345 should be entered as 23.45).) Company Name Wood Lake Operating leverage times times