The sales manager of the Zweng Corporation's Eco- nomic Forecasting Department has estimated that a 40 percent probability exists that sales volume for next year will be 600,000 units with a selling price of $7 per unit. A 60 percent probability exists that sales will be 500,000 units with a selling price of $8 per unit. Variable cost per unit is estimated at $6 (with a probability of 20 percent) or $5 (with a probability of 80 percent). Fixed costs for the next year have been estimated at $800,000. 

Required: 

1. Compute the forecast net income for next year. 

2. Comment on the resulting net income.