X. Woodridge Corporation manufactures numerous products, one of which is called Alpha-32. The company has provided the following data about this product:

Unit sales (a)	95,000
Selling price per unit	$ 93.00
Variable cost per unit	$ 74.00
Traceable fixed expense	$ 1,604,000

Management is considering increasing the price of Alpha-32 by 4%, from $93.00 to $96.72. The companys marketing managers estimate that this price hike would decrease unit sales by 5%, from 95,000 units to 90,250 units. Assuming that the total traceable fixed expense does not change, what net operating income will product Alpha-32 earn at a price of $96.72 if this sales forecast is correct?

Multiple Choice

• $554,400

• $446,480

• $2,158,400

• $2,050,480