Chapter 5 Applying Excel (B) 0 Saved Help Save 8. Exit Submit Check my work 1 0Required information A B C 10. 1 Chapter 5: Applying Excel pomts 2 | 3 lData 630\" 4 Unit sales 50,000 units Print Selling price per unit per unit References Variable expenses per unit $ 42 per unit Fixed expenses $ 675,000 If your formulas are correct, you should get the correct answers to the following questions. (a) What is the break-even in dollar sales? (b) What is the margin of safety percentage? % (c) What is the degree of operating leverage? (Round your answer to 2 decimal places.) 3. Using the degree of operating leverage and without changing anything in your worksheet, calculate the percentage change in net operating income if unit sales increase by 20%. -% 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: A B C 1 Chapter 5: Applying Excel 2 3 Data 4 Unit sales 60,000 units 5 Selling price per unit $ 60 per unit 6 Variable expenses per unit $ 42 per unit 7 Fixed expenses $ 675,000 (a) What is net operating income? {Negative amount should be indicated by a minus sign.) 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 $13,400 to compete effectively. In that event, Thad would also reduce xed expenses to $606,500 by reducing advertising expenses, but he still hopes to sell 200 units per year. d. What would the net operating income be in this situation? (Negative amount should be indicated by a minus sign.) _:I