Graduate Finance (GradFi) is a startup that aims to use the power of social communities to transform the student loan market. It connects participants through a dedicated lending pool, enabling current students to borrow from a school's alumni community. GradFi's revenue model is to take an upfront fee of 60 basis points (0.60%) each from the alumni investor and the student borrower for every loan originated on its platform. GradFi hopes to go public in the near future and is keen to ensure that its financial results are in line with that ambition. GradFi's budgeted and actual results for the third quarter of 2017 are presented below. Requirement 1. Prepare GradFi's static budget of operating income for the third quarter of 2017. (Do not round intermediary calculations. Round the amount you enter into the input cell to the nearest whole dollar.) Graduate Finance Static Budget 2017 8,600 Loans Revenues 14,757,600 Variable costs: Professional labor 4,067,800 Credit verification 877,200 Federal doc fees Courier services Total variable costs Contribution margin Fixed administrative costs Fixed technology costs Operating income 1,204,000 516,000 $ 6,665,000 8,092,600 820,000 950,000 $ 6,322,600