FIN-450 Intermediate Finance clifford kidd & 06/26/20 9:29 AM Homework: Homework 6 Save 2 Score: 0 of 1 pt 2 of 8 (0 complete) HW Score: 0%, 0 of 8 pts P13-16 (similar to) Integrative-Leverage and risk Firm has sales of 97.000 units at $2.04 per unit, variable operating costs of $1.60 per unit, and fixed operating costs of $6,060. Interest is $10,040 per year Firm W has sales of 97,000 units at $2.53 per unit, variable operating costs of $0.97 per unit, and foed operating costs of 562,300 Interest is $17.900 per year. Assume that both firms are in the 40% tax bracket a. Compute the degree of operating, financial, and totalleverage for firm R. b. Compute the degree of operating, financial and totalleverage for fim W. c. Compare the relative risks of the two firms. d. Discuss the principles of leverage that your answers illustrate a. The degree of operating leverage for fem Ris (Round to two decimal places.) 3 4 lec 5 7 8 Find Enter your answer in the answer box and then click Check Answer 7 ports remaining Clear All Check Answer Type here to search 8 $29 6/260