tutes out of 45 minutes) A, B, and C are three firms with the following projections of their performance for the next year. In each case the three scenarios consider different outcomes for the economy i market as a whole and the firm's performance in that scenario. A OptimisticBase Pessimistic Sales 1000 1500 2000 Variable costs 700 1050 1400 Fixed costs 100 100 100 200 350 500 Earnings before interest Interest expense 0 0 0 200 350 Earnings after 500 Interest expense 0 0 0 Earnings after interest 200 350 500 Tax at 35% 70 122.50 175 Earnings after tax 130 227.50 325 B OptimisticBase Pessimistic Sales 1300 1500 1700 Variable costs 390 450 510 B Sales OptimisticBase Pessimistic 1300 1500 1700 Variable costs 390 Fixed costs 450 510 700 700 700 Earnings before interest 210 350 490 Interest expense 40 40 40 Earnings after interest 170 310 450 Tax at 35% 59.50 108.50 157.50 Earnings after tax 110.50 201.50 292.50 OptimisticBase Pessimistic Sales 1200 1500 1800 Variable costs 720 900 1080 Fixed costs 250 250 250 230 350 470 Earnings before interest Interest expense 20 20 20 210 330 450 Earnings after interest Tax at 35% 73.50 115.50 157.50 Earnings after tax 136.50 214.50 292.50 interest 330 450 Tax at 35% 73.50 115.50 157.50 Earnings after tax 136.50 214.50 292.50 Identify the firm that has the highest level of cyclicality. O a. All three have equal levels O b. Impossible to determine from the data provided O C. Firm A O d. Firm C O e. Firm B