Firm Malik has sales of 200,000 units at $4.00 per unit, variable operating costs of $3.40 per unit, and fixed operating costs of $12,000. Interest is $20,000 per year. Firm Mohsin has sales of 200,000 units at $5 per unit, variable operating costs of $2.00 per unit, and fixed operating costs of $145,000. Interest is $35000 per year. Assume that both firms are in the 35% tax rate. Required: a. Compute the degree of operating, financial, and total leverage for firm Malik. b. Compute the degree of operating, financial, and total leverage for firm Mohsin. c. Compare the relative risks of the two firms. d. Discuss the principles of leverage that your answers illustrate.