Company Name

Larson

Variable cost per unit $($a$)$ $ $21\mathrm{.}00$

Sales revenue $(8,400$ units $\backslash$times $$29\mathrm{.}00)$ $ $243,600$

Variable cost $(8,400$ units $\backslash$times a$)(176,400)$

Contribution margin $ $67,200$

Fixed cost $(24,400)$

Net income $ $42,800$

Benson

Variable cost per unit $($a$)$ $ $10\mathrm{.}50$

Sales revenue $(8,400$ units $\backslash$times $$29\mathrm{.}00)$ $ $243,600$

Variable cost $(8,400$ units $\backslash$times a$)(88,200)$

Contribution margin $ $155,400$

Fixed cost $(112,600)$

Net income $ $42,800$

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.