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Includes these 2 images on top so you can see the answers for a and b, just need you to answer C for me please

Includes these 2 images on top so you can see the answers for a and b, just need you to answer C for me pleaseimage text in transcribedimage text in transcribedPlease Just Answer Part C and show work, Answer for parts A& B shown aboveimage text in transcribedimage text in transcribed

a. (1) What is business risk? What factors influence a firm's business risk? Business risks are the risks that are associated with the firm's operations, ignoring any financing effects. Factors that influence a firm's business risk are: variability in the demand for its output; variability in the price at which its output can be sold; variability in the prices of its inputs; the firm's ability to adjust output prices as input prices change; the amount of operating leverage used by the firm; special risk factors. (2) What is operating leverage, and how does it affect a firm's business risk? Operating leverage is the presence of fixed operating costs that don't change when the level of sales change. In finance, companies assess their business risk by capturing a variety of factors that may result in lower-than-anticipated profits or losses. One of the most important factors that affect a company's business risk is operating leverage; it occurs when a company must incur fixed costs during the production of its goods and services. A higher proportion of fixed costs in the production process means that the operating leverage is higher and the company has more business risk

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