Integrative-Leverage and risk Firm R has sales of 102,000 units at units at $1.97 per unit, variable operating cost of $1.69 unit, and fixed operating costs of $$6,020. Interest is $10,050 per year. Firm W has sales of 10200 units at $2.53 per unit, variable operating cost of $o.97 per unit, and fixed operating cost of $62,400. Interest is $17,500 per year. Assume that both firms are in the 40% tax bracket.

a, Compute degree of operating leverage, financial, and total leverage from firm R.

b. Compute degree of operating leverage, financial, and total leverage from firm W.

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a. The degree of operating leverage for firm R is _______. (Round to two decimal places.)

The degree of financial leverage for firm R is ______. (Round to two decimal places.)

The total leverage form firm R ______ . (Round to two decimal places.)

b. The degree of operating leverage for firm W is _______. (Round to two decimal places.)

The degree of financial leverage for firm W is ______. (Round to two decimal places.)

The total leverage form firm W ______ . (Round to two decimal places.)