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please round all numbers to two decimal places. Thank you! IntegrativeLeverage and risk Firm R has sales of 104,000 units at $1.99 per unit, variable

please round all numbers to two decimal places. Thank you!image text in transcribed

IntegrativeLeverage and risk Firm R has sales of 104,000 units at $1.99 per unit, variable operating costs of $1.66 per unit, and fixed operating costs of $6,100. Interest is $10,040 per year. Firm W has sales of 104,000 units at $2.56 per unit, variable operating costs of $0.96 per unit, and fixed operating costs of $62,100. Interest is $17,800 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 firms. 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.)

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