Martin Footwear Co. produces high-quality shoes. To prepare for next years marketing campaign, the companys controller has prepared the following information for the current year, 2020:

Calculate the projected operating income before tax for 2020.

Operating income before tax ? $

$39.00 20.00 Variable costs (per pair of shoes) Direct materials Direct manufacturing labour Variable overhead (manufacturing, marketing, distribution, customer service, and administration) Total variable costs 20.00 $79.00 Fixed costs Manufacturing Marketing, distribution, and customer service Administrative Total fixed costs $2,750,000 530,000 700,000 $3,980,000 Selling price per pair of shoes Expected revenues, 2020 (51,800 units) $179 $9,272,200 Income tax rate 40%