Ibis Paper Company prepared the following static budget for November:

Static Budget

Units/Volume 10,000

Per Unit

Sales Revenue $ 22 $220,000

Variable Costs 8 80,000

Contribution Margin 140,000

Fixed Costs 13,500

Operating Income/(Loss) $126,500

If a flexible budget is prepared at a volume of 13,700 units, calculate the operating income at 13,700 units of production. The production level is within the relevant range.