variable operating costs of $0.96 per unit, and fixed operating costs of $62,400. Interest is $17,600 per year. Assume that both firms are in the 40% tax bracket. a. Compute the degree of operating, financial, and total leverage for firm. b. Compute the degree of operating, financial, and total leverage for 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.) The degree of financial leverage for firm R is (Round to two decimal places.) variable operating costs of $0.96 per unit, and fixed operating costs of $62,400. Interest is $17,600 per year. Assume that both firms are in the 40% tax bracket. a. Compute the degree of operating, financial, and total leverage for firm. b. Compute the degree of operating, financial, and total leverage for 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.) The degree of financial leverage for firm R is (Round to two decimal places.)