Integrative - Leverage and risk. Firm R has salos of 105.000 units at $1.99 per unit, variable operating costs of $1.74 per unit, and fixed operating costs of $6.030. Interest is $10,020 per year Fim Whas sales of 105,000 units at $2.53 per unit, varlable operating costs of $0.95 per unit, and fixed operating costs of $62,200. Interest is $17,300 per year. Assume that both firms are in the 40% tax bracket. a. Compute the degree of operating, financial, and total leverage for firm R. b. Compute the degree of operating, financial and total leverage for firm W. c. Compare the relative risks of the two firm5. d. Discuss the principles of leverage that your answers illustrate. a. The degree of operating leverage for firm R is (Round to two decimal places.)