Answer is complete and correct. Percentage increase in net operating 80 % income 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 Data 96.000 units Selling price per unit 50 per unit 6 Variable expenses per un 20 per unit Fored expenses (a) What is net operating income? (Negative amount should be indicated by a minus sign.) Net operating income (loss) (a) What is net operating income? (Negative amount should be indicated by a minus sign.) Net operating income (s) b) By what percentage did the net operating income increase? Percentage increase in net operating income 5. Thad Morgan, a motorcycle enthusiasts been explong the possibility of relaunching the Westem Hombre brand of cycle that was popular in the 1930s. The retor c ycle would be sold for $15 000 and at that price Thad estimates 800 units would be sold cach year. The variable cost to produce and the cycles would be $11.250 per unit. The annual fixed cost would be 52.700.000 What is the break even in sales Broak even in unseres. 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.) Degree of operating loverage 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 $13.100 to compete effectively. In that event, Thad would also reduce fixed expenses to $2.349,000 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.) Net operating income (los)