firm R house sells of 105,000 units at $1.99 per unit, variable operating cost of $1.72 per unit, and fixed operating cost of $6050. Interest is $10180 Per year. Firm W has sales of 105,000 units at $2.52 per unit, verbal operating cost of $.98 per unit, and fixed operating cost of $62,500. Interest is $17,500 per year. Assume that both firms are in the 40% tax bracket

a. compute the degree of operating, financial, and total leverage of firm R

b. compute the degree of operating financial and total leverage for firm W

c. compare the relative risk of the two firms

d. discuss the principles of leverage that your answers illustrate