Brownsville Novelty Store prepared the following budget information for the month of May:

• Sales are budgeted at $427,000. All sales are on account and a provision for bad debts is made for each month at three percent of sales for the month.
• Inventory was $103,000 on April 30; an inventory increase of $17,000 is planned for May 31.
• All inventory is marked to sell at cost plus 40 percent.
• Estimated expense for selling and administrative expenses for the month are $67,000.
• Depreciation for May is projected at $7,900.

Brownsville's budgeted operating income for May is: