Shorter Company had originally expected to earn operating income of $130,000 in the coming year. Shorter's degree of operating leverage is 2.4. Recently, Shorter revised its plans and now expects to increase sales by 20% next year.

Refer to Figure 4-6. What is the percent change in operating income expected by Shorter in the coming year?

a. 48.0% b. 20.0% c. 8.33% d. 30.0% e. 54.17%