York Engineering Ltd forecasts sales of

1,250,000

for

2022.

Assume that the firm has fixed costs of

320,000

and variable costs amount to

30%

of sales. Operating expenses are estimated to include fixed costs of

37,000

and a variable portion equal to

10%

of sales. Interest expenses for

2022

are estimated to be

25,000.

Estimate York's net profit before taxes for

2022.