Please answer the questions that are on the screenshots.
A B B D 1 Chapter 3: Applylng Excel 2 8 Data It Unit sales mom units 5 Selling price permit $50 per unit 6 WM menses per unit 535 per unit '1" Fixed expenses $960,091) 8 If your formulas are meet. you should get the correct answers to the following questions. (a) What is the break-even in doer sales? l (b) What is the margin of safety percentage? % (c) What is the degree of operating leverage? (Round your answer to 2 declrml places.) l 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: Chapter 3: hpplylng Excel Data Unit sales Selling price per unit erahle expenses per unit Fixed expenses $960,001] mhhh' (a) What is net operating income? {Negatlve amount should be lndlcated by a mlnue slgn.) : (b) Bywhat percentage did the net operating income increase? _I 5. Thad Morgan. a motorcycle enthusiast. has been exploring the possibility of relaunching the Westem Hombre brand of cycle that was popular in the 19305. The retro-look cycle would be sold for $12,000 and at that price. Thad estimates 200 units would be sold each year. The variable cost to produce and sell the cycles would be $9,000 per unit. The annual xed cost would be $300.000. a. What is the breaketuen in unit sales? l b. What is the margin of safety in dollars? l c. What is the degree of operating leverage? (Round your answer to 2 declmal places.) l Thad is worried about the selling price. Rumors are circulating that other retro brands at cycles may be revived. If so, the selling price for the Western Hombre would have to be reduced to 510.100 to compete etfecthiely. In that event. Thad would also reduce xed expenses to $261.000 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 lndlcatned by a mlnus sign.) l