Sleepy Time is a retailer of luxury bed frames located in Los Angeles, California. Due to a recent industry-wide financial crisis, the CFO of Sleepy Time fears a significant drop in the firm's upcoming income stream. The CFO asked you to use the company financial information provided below.

Sales price per unit	$ 3,350.00
Per-unit variable costs:
Invoice cost	2,568.80
Sales commissions	351.20
Total per-unit variable costs	$ 2,920.00
Total annual fixed costs:
Advertising	$ 236,700
Rent	178,700
Salaries	386,700
Total annual fixed costs	$ 802,100

If 4,350 bed frames were sold, Sleepy Time's operating income (_B) would be: (Do not round intermediate calculations.)

Multiple Choice

• $1,108,400.

• $1,148,400.

• $1,068,400.

• $1,208,400.

• $988,400.