2. Change all of the numbers in the data area of your worksheet so that it looks like this: B A 1 Chapter 5: Applying Excel 2 3 Data 4 Unit sales 5 Selling price per unit 6 Variable expenses per unit 7 Fixed expenses 40,000 units 10 per unit 7 per unit $ 96,000 A 4. Confirm your calculations in Requirement 3 above by increasing the unit sales in your worksheet by 20% so that the Data area looks like this: B A Chapter 5: Applying Excel 1 2 3 Data 4 Unit sales 48,000 units 5 $ 10 per unit Selling price per unit Variable expenses per unit 6 $ 7 per unit 7 Fixed expenses $ 96,000 (a) What is net operating income? (Negative amount should be indicated by a minus sign.) Answer is complete and correct. Net operating income (loss) $ 48,000 (b) By what percentage did the net operating income increase? Answer is complete but not entirely correct. Percentage increase in net operating income 50 X % Thad is worried about the selling price. Rumors are circulating that other retro brands of cycles may be revived. If so, the selling price for the Western Hombre would have to be reduced to $15,400 to compete effectively. In that event, Thad would also reduce fixed expenses to $1,984,000 by reducing advertising expenses, but he still hopes to sell 500 units per year. d. What would the net operating income be in this situation? (Negative amount should be indicated by a minus sign.) Answer is complete but not entirely correct. Net operating income (loss) $ (1,230,000)