Madengrad Company manufactures a single product called a densimeter. This product is a density monitoring device attached to large industrial mixing machines used in flour, rubber, petroleum, and chemical manufacturing. A densimeter sells for $900 per unit. The following variable expenses are incurred to produce and sell each densimeter:

direct labor 180

direct materials 240

variable factory over head 105

variable marketing expense 75

Madengrad's annual fixed expenses are $6,600,000. If Madengrad Company achieves a sales and production volume of 8,000 units, the annual net operating income (loss) is expected to be:

	A.	$(4,200,000)
	B.	$1,780,000
	C.	$(2,520,000)
	D.	$(420,000)