Bedco makes high quality beds. Each bed sells for $1,000. They sold 750 beds in 2020 and 900 beds in 2019. Their costs for both years are presented below:

2019:

Cost of Goods Sold: $360,000

Operating Expenses: $220,000

Factory Rent: $60,000

2020:

Cost of Goods Sold: 300,000

Operating Expenses: 190,000

Factory Rent: 60,000

PART A: COMPUTE BEDCOS 2020 DEGREE OF OPERATING LEVERAGE.

PART B: The president expects sales revenues to increase by 46% in 2021. Using the Degree of Operating Leverage information calculated above, please provide the following information.

Expected Percentage Increase in Net Income: ?

Expected 2021 Net Income Amount Assuming the 46% Sales Revenue Increase: ?