# Arnold Vimka is a venture capitalist facing two alternative investment opportunities. He intends to invest $1... ###### Question: Arnold Vimka 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.

Required

1. Use the contribution margin approach to compute the operating leverage for each firm.

2. If the economy expands in coming years, Larson and Benson will both enjoy a 12 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.)

3. If the economy contracts in coming years, Larson and Benson will both suffer a 12 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 increases, both revenue and variable cost will increase.)

##### 8) In the small open economy in the long run model, Savings is A) dependent on...
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##### A positive lens has a focal length of 12 cm. An object is located at a...
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##### Quantum Mechanics. Consider a one-dimensional harmonic oscillator of frequency found in the ground state. At a perturbation is activated. Obtain an expression for the expected value of as a funct...
Quantum Mechanics. Consider a one-dimensional harmonic oscillator of frequency found in the ground state. At a perturbation is activated. Obtain an expression for the expected value of as a function of time using time-dependent perturbation theory. A step by step process is deeply appreciated. T...
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A life insurance representative believes that the mean age of people who buy their first life insurance plan is less than 35. To test his belief he takes a random sample of 15 customers who have just purchased their first life insurance. Their ages are 42, 43,28, 34, 30, 36, 25, 29, 32, 33, 27, 30, ...
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##### Marconi Inc. is a large corporation that produces specialized high-end automobile parts. You have obtained the...
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