The Pantovich Company is not happy with last years operating income of only $30,000. The selling price during the year was $15 per unit. The total variable costs were $180,000 and total fixed costs were $90,000. The sales manager wants to increase the selling price next year by 15% although she knows that the number of units sold would likely be reduced by 10%.

If her proposal is adopted and her assumption about volume of sales is correct, what would the new operating income be?