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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

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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: Chapter 5: Applying Excel 3 Data 4 Unit sales 5 Selling price per unit 80,000 units 550 per unit 530 per unit nit Variable expenses per u 7 Fixed expenses 500,000 (a) What is net opersting income? (Negative amount should be indicated by a minus sign.) operating income ( (b) By what percentage did the net operating income increase? incresse in net operating income 5. Thad Morgan, a motorcycle enthusisst, 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 $15,000 and at that price, Thad estimates 200 units would be sold each year. The variable cost to produce and sell the cycles would be $10,500 per unit The annual fixed cost would be 5855,000. s. What is the break-even in unit sales? -even in unit sales b. What is the margin of safety in dollars? argin of in dollars c. What is the degree of operating leverage? (Round your answer to 2 decimal places.)

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