fix the wrong one

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) What is net operating income? (Negative amount should be indicated by a minus sign.) Answer is complete and correct. (b) By what percentage did the net operating income increase? 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 $17,000 and at that price. Thad estimates 300 units would be sold each year. The variable cost to produce and sell the cycles would be $11,900 per unit. The annual fixed cost would be $1,377,000. a. What is the break-even in unit sales? Answer is complete and correct. b. What is the margin of safety in dollars? Answer is complete but not entirely correct. 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 $15,900 to compete effectively. In that event, Thad would also reduce fixed expenses to $1,295,000 by reducing advertising expenses, but he still hopes to sell 300 units per year. d. What would the net operating income be in this situation? (Negative amount should be indicated by a minus sign.) Answer is complete but not entirely correct