ABC Company sold $15,000$ units last year at a selling price of $$20$ each.

Fixed expenses are $$182,000$ per year.

Variable expenses are $$6$ per unit.

$1$ Prepare a CM IS and compute the degree of leverage.

$2$ Management is confident it can sell $18,000$ units next year.

a What is the expected percentage increase in net operating income for next year?

b What is the expected amount of net operating income for next year?