Wildhorse Company manufactures dog food for distribution in Washington, Oregon, and California. A dog food distributor from Florida has approached Wildhorse and offered to purchase 251000 pounds of dog food for $1.40 per pound. Wildhorse can produce 2022000 pounds of dog food per year, and its results for last year are as follows:

Sales (1831000 at $1.65)	$3021150
Variable costs	1098600
Contribution margin	1922550
Fixed costs	801000
Operating income	$1121550

If Wildhorse accepts the offer, it will only be able to sell 1771000 pounds of dog food at the regular price due to its capacity constraints. What will Wildhorse's total operating income be next year if it accepts the offer?

$1373950

$2060350

$1322100

$1259350