4. Confirm your calculations in Aequirement 3 above by increasing the unit sales in your worksheet by 20% so that the Data area looks like this: (a) What is net aperating income? (Negative amount should be indicated by a minus sign.) (b) By what percentage did the net operating income increase? 5. Thad Morgan, a matorcycle enthusiast, has been exploring the possibility of relaunching the Western Hombre brand of cycle that was popular in the 1930s. The retro-look cycle would be sold for $11,000 and at that price, Thad cstimates 500 units would be sold each year. The variable cost to produce and sell the cycles would be $7,700 per unit. The annual fored cost would be $1,485,000. a. What is the break-ewen in urit sales? b. What is the margin of safety in dollars? c. What is the degree of operating leverage? (Round your answer to 2 decimal places.) Thad is worried about the selling price. Rumors are circulating that other retro beands of cycies mary be revived. If so, the selling peice for the Western Hombere would have to be reduced to $9,500 to compete effectively. In that evert, Thad would also reduce fixed expenses to \$1,248,000 by reducing advertising expenses, but he still hopes to sel 500 units per year. d. What would the net operating income be in this situation? (Negative amount should be indicated by a minus sign)