Fauver Industries plans to have a capital budget of $600,000. It wants to maintain a target capital structure of 40% debt and 60% equity, and it also wants to pay a dividend of $300,000. If the company follows the residual dividend model, how much net income must it earn to meet its investment requirements, pay the dividend, and keep the capital structure in balance?

a. $600,600

b. $580,800

c. $514,800

d. $712,800

e. $660,000