Assume that variable costs increase to 46% of the current sales price and fixed costs increase by $12,700 per month. If Pharoah were to raise its sales price 12% to cover these new costs, but the number of blankets sold were to drop by 5%, what would be the new annual operating income? (Round sales price to 2 decimal places, e.g. 52.75 and final answer to 0 decimal places, e.g. 5,275.)