Sherry and John Enterprises are using the kaizen approach to budgeting for 2018. The budgeted income statement for January 2018 is as follows:

Sales (168,000 units)	$1,020,000
Less: Cost of goods sold	620,000
Gross margin	400,000
Operating expenses (includes $60,000 of fixed costs)	320,000
Operating income	$80,000

Under the kaizen approach, cost of goods sold and variable operating expenses are budgeted to decline by 1%per month.

What is the budgeted operating income for March 2018?