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	$ 3,100.00
Per-unit variable costs:
Invoice cost	2,350.00
Sales commissions	250.00
Total per-unit variable costs	$ 2,600.00
Total annual fixed costs:
Advertising	$ 230,500
Rent	176,600
Salaries	385,500
Total annual fixed costs	$ 792,600

If 3,400 bed frames were sold, Sleepy Time's operating income (_B) would be: (Do not round intermediate calculations.)

Multiple Choice

• $947,400.

• $987,400.

• $907,400.

• $1,047,400.

• $827,400.