b. What is the margin of safety in dollars? c. What is the degree of operating leverage? (Round your answer to 2 decimal places.) 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 $9,500 to compete effectively. In that event, Thad would also reduce fixed expenses to $1,248,000 by reducing advertising expenses, but he still hopes to sell 500 units per year. d. What would the net operating income be in this situation? (Negative amount should be indicated by a minus sign.) b. What is the margin of safety in dollars? c. What is the degree of operating leverage? (Round your answer to 2 decimal places.) 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 $9,500 to compete effectively. In that event, Thad would also reduce fixed expenses to $1,248,000 by reducing advertising expenses, but he still hopes to sell 500 units per year. d. What would the net operating income be in this situation? (Negative amount should be indicated by a minus sign.)