Impact of increased Sales on Operating Income Using the Degree of Operating Leverage Head-First Company had planned to sell 5,000 bicycle helmets at $73 each in the coming year, Unit variable cost is $42 (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 $105,500. The degree of operating leverage is 1.5. Now Head-First expects to increase sales by 10% next year. Required: 1. Calculate the percent change in operating income expected, 96 2. Calculate the operating income expected next year using the percent change in operating income calculated in Requirement 1