7.) After conducting a market research study, Magnificent Manufacturing decided to produce a new interior door to complement its exterior door line. It is estimated that the new interior door can be sold at a target price of $250. The annual target sales volume for interior doors is 28,000. Magnificent has target operating income of 40% of sales.

What is the target operating income?

(2 Points)

$2,800,000

$4,200,000

$7,000,000

$9,800,000