Head$-$First Company had planned to sell $5,000$ bicycle helmets at $$73$ each in the coming year. Unit variable cost is $$40($includes direct materials, direct labor, variable factory overhead, and variable selling expense$).$ Total fixed cost equals $$49,500($includes fixed factory overhead and fixed selling and administrative expense$).$ Operating income at $5,000$ units sold is $$115,500.$ The degree of operating leverage is $1\mathrm{.}4.$ Now Head$-$First expects to increase sales by $10\%$ next year.

Required:

$1.$ Calculate the percent change in operating income expected.

fill in the blank $1$

$\%$

$2.$ Calculate the operating income expected next year using the percent change in operating income calculated in Requirement $1.$

$fill in the blank $2$