Question: Crane Monograms sells stadium blankets that have been monogrammed with high school and university emblems. The blankets retail for $50 throughout the country to loyal alumni of over 2,900 schools. Cranes variable costs are 41% of sales; fixed costs are $118,000 per month.

Assume that variable costs increase to 45% of the current sales price and fixed costs increase by $10,400 per month. If Crane were to raise its sales price 10% to cover these new costs, but the number of blankets sold were to drop by 5%, what would be the new annual operating income? (Round sales price to 2 decimal places, e.g. 52.75 and final answer to 0 decimal places, e.g. 5,275.)

The new annual operating income?