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Manero Company included the following information in its annual report: 2019 2018 2017 Sales $ 178,400 $ 162,500 $ 155,500 Cost of goods sold 115,000

Manero Company included the following information in its annual report:

2019 2018 2017
Sales $ 178,400 $ 162,500 $ 155,500
Cost of goods sold 115,000 102,500 100,000
Operating expenses 50,000 50,000 45,000
Operating income 13,400 10,000 10,500

In comparison to year 2018, the increase in operating income of 2019 was primarily caused by the effect of margin increase of (ignore taxes):

a $978.

b $1,194

c $2,422

d $3,400.

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