Heating oil futures contracts are traded on the New York Mercantile Exchange (NYM), a division of the CME Group. The standard contract size for heating oil futures is 43,200 gallons per contract. You have an inventory of 1.728 million gallons, and you want to construct a full hedge. Suppose the average acquisition price of your 1.870 million gallons of heating oil is $1.87 per gallon and that todays futures price for delivery during your heating season is $2.17. In the past, market conditions in your distribution area were such that you could sell your heating oil to your customers at a price 25 cents higher than the prevailing futures price. To help finance your inventory purchases, you borrowed money. During the heating season, you have to make an interest payment of $600,000. Calculate the pretax profit for your enterprise in the cases shown in the spreadsheet without a hedge in place and with a hedge in place.