What is the dollar amount by which Mangrove's operating income would change if Mangrove adopted the method proposed by its engineers?

Required information Mangrove Industries manufactures pharmaceutical products in two departments: mixing and tablet-making. Additional monthly information about operations in the two departments is presented below: Mixing Ta blet-Making Capacity per hour 150 grams 200 tablets Monthly capacity (2,000 machine-hours available in each 300,000 grams 400'000 tablets department) Monthly production 200,000 grams 390,000 tablets Monthly xed operating costs $16,000 $39,000 Fixed operating cost per gram Itablet $0.08 $0.10 Each month, the mixing department manufactures 200,000 grams ofdirect materials mixture. All direct material costs are incurred in the mixing department and the cost of direct materials used to make the direct materials mixture is $156,000 per month. Direct materials costs are the only variable cost in the entire manufacturing operation. The mixing department manufactures 200,000 grams of direct material mixture (enough to make 400,000 tablets) because the tablet-making department has only enough capacity to manufacture 400,000 tablets. Each tablet contains 0.5 grams of direct material mixture. The direct materials mixture is perishable and therefore cannot be stored as inventory. The tablet-making department manufactures only 390,000 each month from the 200,000 grams received from the mixing department because 2.5% ofthe direct materials mixture is lost in the tablet-making process. All costs incurred in the tablet-making department are fixed costs. Each tablet sells for $1.00. The statement and question listed below refers only to the preceding data. The questions presented relating to contractor A are completely separate and unrelated to the questions related to contractor B. The questions relating to Mangrove's engineers' quality-improvement idea is completely separate and unrelated to the questions relating to contractor A and contractor B. Mangrove's engineers have devised a method that would eliminate shrinkage in the tablet-making department. The new operating procedure would save the 10,000 tablets currently being lost in the tablet-making department. The modification would cost $7,000 a month. What is the dollar amount by which Mangrove's operating income would change if Mangrove adopted the method proposed by its engineers