Gilmore Electronics had the following data for a recent year:

Cash sales	$135,000
Credit sales	512,000
Accounts receivable determined to be uncollectible	9,650

The firm's estimated rate for bad debts is 1.15% of credit sales.

Conceptual Connection: If Gilmore's estimate of bad debts is correct (1.15% of credit sales) and the gross margin is 20%, by how much did Gilmore's income from operations increase assuming $150,000 of the sales would have been lost if credit sales were not offered?