Water and Power Co$.$ Income Statement for the Year Ending on December $31($Millions of dollars$)$

The firm's CEO would like sales to increase by $25\%$ next year. Assume that $(1)$ the operating costs $($excluding depreciation$)$ remain at $80\%$ of sales,

$(2)$ depreciation remains at $4\%$ of sales, and $(3)$ the interest cost increases from $10\%$ to $15\%$ of earnings before interest and taxes $($EBIT$).$ The tax

rate of $40\%$ also remains the same.

What will be the company's operating income in the second year?