Sales (161,250 units) $964,000

Cost of goods sold (645,000)

Gross margin 319,000

Operating expenses (267,000)

Operating income $52,000

Advanced is developing the 2020 budget. In 2020 the company would like to increase selling prices by 13.5%, and as a result expects a decrease in sales volume of 9%. All other operating expenses are expected to remain constant. Assume that cost of goods sold is a variable cost and that operating expenses are a fixed cost.

The budgeted sales for 2020 is