1. Manero Company included the following information in its annual report:

	20X3				20X2				20X1
Sales	$	178,400			$	162,500			$	155,500
Cost of goods sold		115,000				102,500				100,000
Operating expenses		50,000				50,000				45,000
Operating income		13,400				10,000				10,500

In compairson to year 2021, the effect of sales growth on operating income of 2022 was (ignore taxes):

1. $473

2. $431

3. $6,667

4. $7,000