Woods Company Originally Expected to Earn Operating Income of $150,000

Multiple Choice

Woods Company originally expected to earn operating income of $150,000 next year. Woods's degree of operating leverage is 2.4. Recently, Woods revised its plans and now expects to increase sales by 20% next year.
-Refer to the Figure.What is Woods's revised expected operating income for the coming year?

A) $62,400
B) $130,000
C) $156,000
D) $222,000