The following information relates to Zinc Corporation for last year: Sales $500,000 Net operating income $25,000 Degree of operating leverage 5 Sales at Zinc are expected to be $600,000 next year, which is an increase of 20% of revenue. Assuming no change in cost structure, this means that net operating income for next year should be: (Note: % Change in income = operating leverage x % change in revenue) Show your work.

A) $30,000 B) $45,000 C) $50,000 D) $125,000