How do you do this?

4. Conrm your calculations in Requirement 3 above by increasing the unit sales in your worksheet by 20% so that the Data area looks like this: E C Data Unit sales 12,000 units Selling price per unit 33 30 per unit Variable expenses per unit 15 12 per unit Fixed expenses 5 135,000 {a} What is net operating income? {Negative amount should be indicated by a minus sign.) {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 1930s. The retrolook cycle would be sold for $14,000 and at that price, Thad estimates 200 units would be sold each year. The variable cost to produce and sell the cycles would be $11,200 per unit. The annual xed cost would be $280,000. a- What is the break-even in unit sales? b. What is the margin of safety in dollars? _:I 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 Westem Hombre would have to be reduced to $11,900 to compete effectively. In that event, Thad would also reduce xed expenses to $227,000 by reducing advertising expenses, but he still hopes to sell 200 units per year. {3. What would the net operating income be in this situation? {Negative amount should be indicated by a minus sign.) _:I