Corrigan Enterprises is studying the acquisition of two electrical component insertion systems for producing its sole product, the universal gismo. Data relevant to the systems follow.

Model no. 6754:
	Variable costs, $16.00 per unit
	Annual fixed costs, $986,200

Model no. 4399:
	Variable costs, $12.80 per unit
	Annual fixed costs, $1,113,900

Corrigans selling price is $67 per unit for the universal gismo, which is subject to a 5 percent sales commission. (In the following requirements, ignore income taxes.)

2-a. Calculate the net income of the two systems if sales and production are expected to average 45,000 units per year.