Chapter 3 Graded Homework Saved Help Save & Exit Submit Check my work 12 Required information retro-look cycle would be sold for $12,000 and at that price, Thad estimates 300 units Part 2 of 2 would be sold each year. The variable cost to produce and sell the cycles would be $9.000 per unit. The annual fixed cost would be $720,000. 2 a. What is the break-even in unit sales? points Break-even in unit sales BOOK Print b. What is the margin of safety in dollars? References Margin of safety in dollars c. What is the degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage 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 $10,600 to compete effectively. In that event. Thad would also reduce fixed expenses to $656.000 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 e minus sign.) Net operating income (loss) T