1. Avila Promotions, Inc. sells T-shirts decorated for a variety of concert performers. The company has developed the following budget for the coming year based on a sales forecast of 80,000 T-shirts:

Sales	$1,200,000
Cost of Goods Sold	720,000
Gross Profit	480,000
Operating Expenses ($180,000 is fixed)	316,000
Operating Income	164,000

Cost of goods sold and variable operating expenses vary directly with sales.

What would be the operating income if actual sales are 60,000 T-shirts? [Income]