McCann Publishing has a target capital structure of $35\%$ debt and $65\%$ equity. This year's capital budget is $$850,000$ and it wants to pay a dividend of $$200,000.$ If the company follows a residual dividend policy, how much net income must it earn to meet its capital budgeting requirements and pay the dividend, all while keeping its capital structure in balance?

Select the correct answer.

a$.$ $$753,550$

b$.$ $$751,450$

c$.$ $$754,600$

d$.$ $$755,650$

e$.$ $$752,500$