Here is Drake Company's income statement for the most recent year: Sales (26,000 units)........................... $650,000 Less: Variable expenses.................. 442,000 Contribution margin.......................... 208,000 Less: Fixed expenses........................ 234,000 Net operating loss............................. $ (26,000)
Drakes sales manager is convinced that if the company had made an additional $60,000 expenditure on advertising (fixed cost), the company's sales would have increased by 13,000 units and $325,000. If he is correct, what would the company's net operating income amount to?