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 $15,000 and at that price. Thad estimates 600 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 $2,160,000 a What is the break-even in unit sales? Break-even in unit sales 400 b. What is the margin of safety in dollars? Margin of safety in dollars What is the degree of operating leverage (Round your answer to 2 decimal places.) Degree of operating leverage Thad is worried about the selling price Rumors are circulating that other retro brands of cydes may be revived. If so, the selling price for the Western Hombre would have to be reduced to $13,200 to compete effectively in that event. Thad would also reduce forced expenses to 51236.000 by reducindadvertising expenses, but he still hopes to sell 600 units per year. a What would me net operating income be in this situation (Negative amount should be indicated by a minus sign.)