URGENT

Change all of the numbers in the data area of your A 1 Chapter 5: Applying Excel 2 3 Data 4 Unit sales 5 6 7 Selling price per unit Variable expenses per unit Fixed expenses B 40,000 units 60 per unit 30 per unit $ 600,000 C Prev S 12 of 12 # Next >

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? Note: Round your answer to 2 decimal places. d. 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 $10,000 to compete effectively. In that event, Thad also would reduce fixed expenses to $1,095,000 by reducing advertising expenses, but he still hopes to sell 600 units per year. What would the net operating income be in this situation? Note: Negative amount should be indicated by a minus sign. d. 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 $10,000 to compete effectively. In that event, Thad also would reduce fixed expenses to $1,095,000 by reducing advertising expenses, but he still hopes to sell 600 units per yeat: What would the net operating income be in this situation? Note: Negative amount should be indicated by a minus sign. 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 retro-look cycle would be sold for $12,000, and at that price, Thad estimates he could sell 600 units each year. The variable cost to produce and sell the cycles would be $9,000 per unit. The annual fixed cost would be $1,440,000. a. What is the break-even in unit sales? b. What is the margin of safety in dollars? (a) What is net operating income? Note: Negative amount should be indicated by a minus sign. (b) By what percentage did the net operating income increase? 4. Confirm your caiculations in Requirement 3 above by increasing the unit sales in your worksheet by 20% so that the Data are like this