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Last year, Cayman Corporation had sales of $ 6 million, total variable costs of $ 2 million, and total fixed costs of $ 1 million.

Last year, Cayman Corporation had sales of $6 million, total variable costs of $2 million, and total fixed costs of $1 million. In addition, they paid $480,000 in interest to bondholders. Cayman has a 21% marginal tax rate. If Cayman's sales increase 6%, what should be the increase in operating income?

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