my subject is financial management

c. The following price and cost data are given for Firm A and B: $ 2.5 Firm A Firm B Selling price per unit $ 2 Variable cost per unit $1.70 $ 1.00 Fixed operating costs $ 6,000 $ 62,500 Interest $ 10,000 per year $ 17,500 per year Note: Assume that both firms are making equal sales and have a 40% tax rate. i. Calculate operating, financial and total leverage for both firms. ii. Compare the relative risks of the two firms iii. Discuss the principles of leverage illustrated in your answers. c. The following price and cost data are given for Firm A and B: $ 2.5 Firm A Firm B Selling price per unit $ 2 Variable cost per unit $1.70 $ 1.00 Fixed operating costs $ 6,000 $ 62,500 Interest $ 10,000 per year $ 17,500 per year Note: Assume that both firms are making equal sales and have a 40% tax rate. i. Calculate operating, financial and total leverage for both firms. ii. Compare the relative risks of the two firms iii. Discuss the principles of leverage illustrated in your answers