Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $80 per unit. Variable expenses are $40.00 per unit, and fixed expenses total $180,000 per year. Its operating results for last year were as follows:

Sales	$	2,160,000
Variable expenses		1,080,000
Contribution margin		1,080,000
Fixed expenses		180,000
Net operating income	$	900,000

5a) The sales manager is convinced that a 10% reduction in the selling price, combined with a $73,000 increase in advertising, would increase this year's unit sales by 25%. If the sales manager is right, what would be this year's net operating income if his ideas are implemented?

I keep getting these numbers

Sales	2430000
Variable expenses	1350000
Contribution Margin	1080000
Fixed Expenses	253000
Net Operating Income	827000
	900000-827000=-73000