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: 1 Chapter 5: Applying Excel 3 Data 4 Unitsales Selling price per unit Variable expenses per unit Fixed expenses 84,000 units 10 per unit 6 per unit s S 210,00o (a) What is net operating income? (Negative amount should be indicated by a minus sign.) operating income (loss) b) By what percentage did the net operating income increase? increase in net 5. Thad Morgan, a motorcycle 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 estimates 800 units would be sold each year. The variable cost to produce and sell the cycles would be $8,800 per unit. The annual fixed cost would be $1,320,000. a. What is the break-even in unit sales? -even in unit sales 5. Thad Morgan, a motorcycle 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 estimates 800 units would be sold each year. The variable cost to produce and sell the cycles would be $8,800 per unit. The annual fixed cost would be $1,320,000 a. What is the break-even in unit sales? ak-even in unit sales b. What is the margin of safety in dollars? Margin of safety in dollars c. What is the degree of operating leverage? (Round your answer to 2 decimal places.) e of operating 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 $9,200 to compete effectively. In that event, Thad would also reduce fixed expenses to $1,043,000 by reducing advertising expenses, but he still hopes to sell 800 units per year. d. What would the net operating income be in this situation? (Negative amount should be indicated by a minus sign.) t operating income