Show Me How progress-false Print nem Impact of locreased Sales on Operating Income Using the Degree of Operating Leverage Head-First Company had planned to sell 5,000 bicycle helmets at $69 each in the coming year. Unit variable cost is 540 (indudes direct materials, direct tabor, varade factory overhead, and variable selling expense) Total fixed cost equals $49,500 (includes fed factory overhead and foed selling and administrative expense) Operating Income at 5,000 units sold is $50,500. The degree of operating leverage is 2. Now Head First expects to increase sales by 10% next year Required: 1. Calculate the percent change in operating income expected, 20 % 2. Calculate the operating income expected next year using the percent change in operating income calculated in Requirement1 1,010 X Feedback Check My Wort 1. Multiply degree of operating leverage by percent change in sales