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Lisbon Corporation is analyzing the following costs with respect to its decision to expand production and sales volume: New delivery equipment cost, $170,000. Annual depreciation

Lisbon Corporation is analyzing the following costs with respect to its decision to expand production and sales volume:

New delivery equipment cost, $170,000.
Annual depreciation expense on the new delivery equipment, $17,000.
Old delivery equipment cost, $133,000.
Annual depreciation expense on the old delivery equipment, $13,300.
Annual decrease in utilities cost, $1,400.
Annual increase in advertising costs, $6,800.
Annual increase in sales, $81,000.
Annual increase in cost of goods sold, $21,000.
Annual increase in sales commissions, $1,500.
Annual increase in shipping costs, $400.

How much is the differential annual net operating income?

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