CraneCompany manufactures dog food for distribution in Washington, Oregon, and California. A dog food distributor from Florida has approachedCraneand offered to purchase242000pounds of dog food for $1.40per pound.Cranecan produce2004000pounds of dog food per year, and its results for last year are as follows:

Sales (1822000at $1.65)

$3006300Variable costs

1093200Contribution margin

1913100Fixed costs

792000Operating income

$1121100

IfCraneaccepts the offer, it will only be able to sell1762000pounds of dog food at the regular price due to its capacity constraints. What willCrane's total operating income be next year if it accepts the offer?

Pick from the following:

a $1360900

b $1312200

c $1251700

d $2043700