10) Two firm A and B both produce widges. The price or widgers is $1 each. Firm A has fixed cost of 500,000 and varrable costs of SoL per widget. Firn B has total fiked costs of $240,000 and variab? cost \& 75 \& widyes. The corporate tax rate is 40% If the economy 13 strong, each fivm colll sall 1200,000 widges. If the economy enters a recessios , each firm dill sell 1100,000 coidgess. Wuate the firm B s degree of operating leverage 1) 866 2) 7.14 3) 9.09 4) 7.86