Pharoah Industries manufactures sump-pumps. Its most popular product is called the Super Soaker, which has a retail price of $1,130 and costs $540 to manufacture. It sells the Super Soaker on a standalone basis directly to businesses. Pharoah also provides installation services for these commercial customers, who want an emergency pumping capability (with regular and back-up generator power) at their businesses. Pharoah also distributes the Super Soaker through a consignment agreement with Menards. Income data for the first quarter of 2020 from operations other than the Super Soaker are as follows. Revenues $10,029,000 Expenses 7,027,000 Pharoah has the following information related to two Super Soaker revenue arrangements during the first quarter of 2020. 1. Pharoah sells 30 Super Soakers to businesses in flood-prone areas for a total contract price of $54,900. In addition to the pumps, Pharoah also provides installation (at a cost of $160 per pump). On a standalone basis, the fair value of this service is $210 per unit installed. The contract payment also includes a $11 per month service plan for the pumps for 3 years after installation (Pharoah's cost to provide this service is $7 per month). The Super Soakers are delivered and installed on March 1, 2020, and full payment is made to Pharoah. Any discount is applied to the pump/installation bundle. 2. Pharoah ships 300 Super Soakers to Menards on consignment. By March 31, 2020, Menards has sold two-thirds of the consigned merchandise at the listed price of $1,130 per unit. Menards notifies Pharoah of the sales, retains a 5% commission, and remits the cash due Pharoah. X Your answer is incorrect. Determine Pharoah Industries' 2020 first-quarter net income. (Ignore taxes.) Net income 2980640 Save for Later Attempts: 2 of 3 used Submit