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Problem 11-27A (Algo) Analyzing operating leverage LO 11-3, 11-4 Amold Vimka is a venture capltalist 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. Required a. Use the contribution margin approach to compute the operating leverege for each firm. b. If the economy expands in coming years, Larson and Benson will both enjoy a 11 percent per year increase in saies, assuming that the selling price remains unchanged. Compute the change in net income for cach firm in dollar amount and in percentage (None Since the number of units increases, both revenue and variable cost will increases c. If the economy contracts in coming years, Larson and Bensan will both suffer a if percent deciease in sales volume, assuming that the selling price remains inchanged. Compute the change in net income for esch firm in dacar amouns and in percentigen incte. Since the number of urits decreases, both total revenue and total variable cost will decrease) Since the number of units decreases, both total revenue and total varlable cost will decrease.) Complete this question by entering your answers in the tabs below. Use the contribution margin approach to compute the operating leverage for each firm. (fiound your answars to 2 dacin places.) Complate this question by entering your answers in the tabs balow. 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 ench firm in dollar amount and in percentage. (Note: Since the number of units increases, both revenue and variable cost will increase.) (hound "Percentage" answer to 2 declinal place (i.e, 2345 phould be centened as 23.45. Found final an cwers to nearest whole dollari) E economy contracts in coming years, Larson and Benson will both suffer a 11 percent decrease in sales volume, ming that the selling price remains unchanged. Compute the change in net income for each firm in ofollar amount and in entage. (Note: Since the number of units decreases, both total revenue and total variable cost will decrease.) (heunid centage answer to 2 decimal place (Le. 2345 should be entered its 23 . 45 ). Rounif final anfouers to heartist whole ar