Problem 2-23A Analyzing p you to analyze the following financial data for the past year's operations of the t ering and give him some business advice. mka is a venture capitalist facing two altefflall two firms he iso invest $800,000 in a start 00 in a start-up firm. He is nervous, however, about future UUO Company Name Benson Larson Variable cost per unit (a) Sales revenue (8,000 units x $25) Variable cost (8,000 units x a) Contribution margin Fixed cost Net income $16.00 $200,000 (128,000) 72,000 (24,000) $ 7.00 $200,000 (56,000) $144,000 (96,000) $ 48,000 Required Round your figures to two decimal points in all required computation. 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 10 percentpe 0) increase in sales, assuming that the selling price remains unchanged. Compute the charg income for each firm in dollar amount and in percentage. (Note: Since the number of t creases, both revenue and variable cost will increase.) c. If the economy contracts in coming years, Larson and Benson will both suffer a decrease in sales volume, assuming that the selling price remains unchanged. Compute in net income for each firm in dollar amount and in percentage. (Note: Since the numb 10 decr reases, both total revenue and total variable cost will decrease.) Write a memo to Arnold Vimka with your analyses and advice