2 Change all of the numbers in the data area of your worksheet so that it looks like this: If your formulas are correct, you should get the correct answers to the following questions. (a) What is the break-even in dollar sales? (b) What is the margin of safety percentage? (c) What is the degree of operating leverage? (Round your answer to 2 decimal ploces.) 3. Using the degree of operating leverage and without changing anything in your worksheet, calculate the percentage change in net operating income if unit sales increase by 20%. 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 (a) What is net operatung income? (Negative amount should be Indlcated by a minus sign.) (b) By what percentage did the net operating income increase? 5. Thad Morgan, a motorcycle enthuslast, has been exploring the possibility of relaunching the Western Hombre brand of cycle that was popular in the 1930 s. The retrotook cycle would be sold for $15,000 and at that price, Thad estimates 700 units would be sold each year. The vartable cost to produce and sell the cycles would be $10,500 per unit. The annual fixed cost would be $2,520,000. a. What is the breakeven in unit sales? b. What is the margin of salety in dollars? c. What is the degree of operating leverage? (Round your onswer to 2 decimal places.) c. What is the degree of operating leverage? (Round your answer to 2 decimal places.) Thad is worried about the seling price. Rumors are circulating that other retro brands of cycles may be revived. If so, the selling price for the Westem Hombre would have to be reduced to $12,500 to compete effectively, In that event, Thad would also reduce fixed expenses to $2092000 by reducing advertising expenses, but he sull hopes to sell 700 units per year d. What would the net operating income be in this situation? (Negetive amount should be Indicated by o minus sign.)