2.12 (LO 2) Cost estimation Managers of Tom Brown Distributors are evaluating the compensa- tion system for the company's sales personnel. Currently, the two salespeople have a combined salary of $50,000 per year and earn a 4% sales commission. The company is considering two alternatives to the current compensation system. The first alterna- tive is to reduce total salaries to $20,000 and increase the sales commission to 5%. The second alternative is to eliminate the salaries and pay a 25% sales commission. Sales projections under each of the compensation systems are as follows: Current system $900,000 Salary and 5% commission $1,100,000 25% commission $1,300,000 QUESTION 17 Use the information in assignment 2.12 on pg. 2-27 to compute the estimated operating income of the company if the salary and 5% commission option is chosen. (your answer should be rounded to the nearest whole dollar, and no $ signs should be used.)