plz answer the other half of the quetion and make sure that it isnt cut off! thank u.
Check my Arnold Vimka is a venture capitalist facing two alternative investment opportunities. He intends to invest S1 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 () Sales revenue (8.700 units x 5.30.00) Variable cost (8,700 units Contribution margin Fixed cost Net Income Company Name Larson Benson 5 20.00 5 10.00 $ 261,000 $ 261,000 (174,000) (82.000) $ 87,000 $ 174,000 (4,200) (111200) 562,800 $ 62,800 Required a. Use the contribution margin approach to compute the operating leverage 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 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) c. If the 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 dolar amount and 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 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 (.e. 2345 should be entered as 23.45). Round final answers to nearest whole dollar) Show less $ Variable cost per unit Sales revenue Variable cost Contribution margin Fixed cost Net income Percentage change Company Name Larson Benson 20.00 $ 10 00 289.710 193.140 96.570 (24200) 72 370 1524 Required A Required B Reque If the 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 amount and in percentage. (Note: Since the number of units decreases, both total revenue and total variable cost will decrease.) (Round "Percentage" answer to 2 decimal place (ie, 2345 should be entered as 23.45). Round final answers to nearest whole dollar) Show less Variable cost per unit Sales revenue Variable cost Contribution margin Fixed cost Net Income Percentage change Company Name Larson Benson $ 2000 $ 1000 232 290 154 860 77.430 (24200) 5 53 230 15 24%
