Tick Tock Watch Co. manufactures high-quality watches. The company has received a special order for 120 of its classic watch to give to attendees at a prestigious conference next month. Each of these watches would include the specialized logo of the conference. Last year Tick Tock produced 920 classic watches, and the company has the capacity to produce 1,200 classic watches per year. Tick Tocks classic watch normally sells for $500 each, but the special offer is for $55,800 ($465 per watch). Management estimates the variable cost per watch is $295; fixed manufacturing overhead is $45/watch. Of the fixed costs assigned to this special order, $2,750 is for the equipment required to imprint the specialized logo on the face of the watch, while the remainder is attributable to costs that will be incurred regardless of whether the special order is produced. The special equipment will have no further use after the completion of the order. What is the operating income generated by the special order?

Group of answer choices

$12,250

$20,400

$17,650

$15,000