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 operating income? Note: Negative amount should be indicated by a minus sign. (b) By what percentage did the net operating income increase? 5. Thad Morgan, a motorcycle enthusiast, has been exploring the possibility of relaunching the Western Hombre brand of cycle that was popular in the 1930 s. The retro-look cycle would be sold for $14,000, and at that price, Thad estimates he could sell 100 units each year. The variable cost to produce and sell the cycles would be $10,500 per unit. The annual fixed cost would be $280,000. a. What is the break-even in unit sales? b. What is the margin of safety in dollars? c. What is the degree of operating leverage? Note: Round your answer to 2 decimal places. d. Thad is worried about the selling price. Rumors ore circulating that other retro brands of cycles may be revived, If so, the seiling price for the Western Homber would have to be reduced to $11,500 to compete effectively. In that event, Thad also would reduce fixed expenses to $264,000 by reducing advertising expenses, but he still hopes to sell 100 units per year. What would the net operating income be in this situotion? Note: Negative amount should be indicated by a minus sign