Two firms, Sky and Moon, from the same industry reported the following income statements. Sky, Inc. Sales -COGS and Other Variable Operating Costs -Fixed Operating Costs EBIT -Interest EBT -Taxes Net Income 2019 $110,000 - 77,000 - 15,000 18,000 0 18,000 5,400 $ 12,600 2020 $150,000 105,000 - 15,000 30,000 0 30,000 9,000 $ 21,000 Moon, Inc. Sales -COGS and Other Variable Operating Costs - Fixed Operating Costs EBIT -Interest EBT -Taxes Net Income 2019 $110,000 - 66,000 25,000 19,000 - 5,000 14,000 4,200 $ 9,800 2020 $150,000 - 90,000 25,000 35,000 5,000 30,000 9,000 $ 21,000 Required: Calculate the operating leverage for the two firms (using 2019 sales as the base) and then compare the leverage of all types used by the two firms and discuss its impact on the firms' cost of capital