XYZ budgeted its activity for October 2018 from the following information: - Sales are budgeted at $607,500. All sales are credit sales and a provision for doubtful accounts is made monthly at the rate of 2% of sales. - Merchandise inventory was $96,000 at September 30,2004 , and an increase of $70,000 is planned for the month. - All merchandise is marked up to sell at invoice cost plus 35%. - Estimated cash disbursements for selling and administrative expenses for the month are $84,000. - Depreciation for the month is projected at $20,000. Its projecting operating income for October 2018 is