Impact of Increased Sales on Operating Income Using the Degree of Operating Leverage expects to increase sales by $10\%$ next year.

Required:

Calculate the percent change in operating income expected.

$\%$

Calculate the operating income expected next year using the percent change in operating income calculated in Requirement $1.$Degree of Operating Leverage fixed cost equals $$49,500($includes fixed factory overhead and fixed selling and administrative expense$).$ Operating income at $5,000$ units sold is $$100,500.$

Required:

Calculate the degree of operating leverage. Round the answer to one decimal place.