Integrative: Leverage and risk Firm R has sales of 100,000 units at $2 00 per unit, variable operating costs of $1.70 per unit, and fixed operating costs of $6,000. Interest is $10,000 per year. Firm W has sales of 100,000 units at $2.50 per unit, variable operating costs of $1.00 per unit, and fixed operating costs of $62,500. Interest is $17,500 per year. Assume that both firms are in the 40% tax bracket Compute the degree of operating, financial, and total leverage for firm R Compute the degree of operating, financial, and total leverage for firm W. Compare the relative risks of the two firms. Discuss the principles of leverage that your answers illustrate