Blossom Footwear Co. produces high-quality shoes. To prepare for next years marketing campaign, the companys controller has prepared the following information for the current year, 2022:

The company controller has set the revenue target for 2023 at $10,185,100 (or 56,900 pairs). He believes an additional marketing cost of $428,000 for advertising in 2023, with all other costs remaining constant, will be necessary to attain the revenue target. Calculate the operating income for 2023 if the additional $428,000 is spent and the revenue target is met.

$39 20 Variable costs (per pair of shoes) Direct materials Direct manufacturing labour Variable overhead (manufacturing, marketing, distribution, customer service, and administration) Total variable costs 20 $79 Fixed costs Manufacturing Marketing, distribution, and customer service Administrative Total fixed costs $2,750,000 530,000 700,000 $3.980,000 Selling price per pair of shoes Expected revenues, 2022 (51.800 units) Income tax rate $179 $9,272,200 40% Operating income $ 1164000