HiTech manufactures two products: Regular and Super. The results of operations for 20x1 follow.

	Regular	Super	Total
Units	10,000	3,700	13,700
Sales	$240,000	$740,000	$980,000
Less:Cost of goods sold	180,000	481,000	661,000
Gross Margin	$60,000	$259,000	$319,000
Less: Selling Expenses	60,000	134,000	194,000
Operating Income	0	$125,000	$125,000

Fixed manufacturing costs included in cost of goods sold amount to $30,000 for Regular and $74,000 for Super the remaining cost of goods sold is variable manufacturing costs. Variable selling expenses are $4 per unit for Regular and $20 per unit for Super; the remaining selling expenses are fixed cost.

Required:

1. If HiTech eliminates Regular and uses the available capacity to produce and sell an additional 1,500 units of Super, what would be the new operating income for the company? Fill in the new income statement below. Hint: Since the company is moving capacity over to Super, the fixed costs incurred for the Regular product will shift to the Super product. Do not use Dollar signs, but do use commas.

	Super
Units
Sales
Less: Cost of goods sold
Gross Margin
Less: Selling Expense
Operating income