I will thumbs up for correct answers. Thanks a ton!

Unit Change 60 Forecasted Operations 200 $4,000.00 (150.00) Sales with 30.00% Increase 260 $6,000.00 (150.00) $2,000.00 (0.00) Sales in units (millions) Earnings before interest and taxes (EBIT) Less: Interest Earnings before taxes Less: Taxes (40%) Net income Earnings per share (25 million shares) $3,850.00 1,540.00 $5,850.00 2,340.00 $3,510.00 $2,000.00 (0.00) $1,200.00 $2,310.00 $92.40 $140.40 $48.00 You are an employee for Newcastle Co., and your boss needs help assessing the level of risk associated with the firm's current financial position. Begin by calculating the degree of financial leverage for the change between forecasted operations and the operational increase of 30.00%. O 1.03x 1.04x 0.39x 0.60x Your boss says, "Looking good so far. However, I would like to know how we stack up against our strongest competitor, Sunderland Co." Compare the degree of operating leverage of Sunderland Co. with that of Newcastle Co. and then answer the following question. All else being equal, is Newcastle Co. more risky than, less risky than, or as equally risky as Sunderland Co., considering that the degree of financial leverage for Sunderland Co. is 1.04x? Equally risky Less risky More risky