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Blossom Company manufactures dog food for distribution in Washington, Oregon, and California. A dog food distributor from Florida has approached Blossom and offered to purchase

Blossom Company manufactures dog food for distribution in Washington, Oregon, and California. A dog food distributor from Florida has approached Blossom and offered to purchase 252000 pounds of dog food for $1.40 per pound. Blossom can produce 2024000 pounds of dog food per year, and its results for last year are as follows:

Sales (1832000 at $1.65) $3022800
Variable costs 1099200
Contribution margin 1923600
Fixed costs 802000
Operating income

$1121600

If Blossom accepts the offer, it will only be able to sell 1772000 pounds of dog food at the regular price due to its capacity constraints. What will Blossoms total operating income be next year if it accepts the offer?

$1375400

$1323200

$2062200

$1260200

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