b. What is the margin of safety in dollars? Answer is complete but not entirely correct. c. What is the degree of operating leverage? Note: Round your answer to 2 decimal places. Answer is complete but not entirely correct. d. 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 $9,000 to compete effectively. In that event, Thad also would reduce fixed expenses to $1,664,750 by reducing advertising expenses, but he still hopes to sell 700 units per year. What would the net operating income be in this situation? Note: Negative amount should be indicated by a minus sign. Answer is complete but not entirely correct. 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 $11,000, and at that price, Thad estimates he could sell 700 units each year. The variable cost to produce and sell the cycles would be $8,250 per unit. The annual fixed cost would be $1,828,750. a. What is the break-even in unit sales? Answer is complete but not entirely correct