QUESTION \#1 Rollomatics Company manufactures cutting tools. Its most popular product is called the Grind Smart, which has a retail price of $1,200 and costs $540 to manufacture. It sells the Grind Smart on a standalone basis directly to businesses. Rollomatics also provides installation services for these commercial customers. Rollomatics also distributes the Grind Smart through a consignment agreement with Home Depot. Income data for the first quarter of 2025 from operations other than the Grind Smart are as follows. Revenues $9,500,000 Expenses 7,750,000 Rollomatics has the following information related to two Grind Smart revenue arrangements during the first quarter of 2025. Rollomatics sells 30 Grind Smarts to businesses for a total contract price of $54,600. In addition, Rollomatics also provides installation (at a cost of $150 each). On a standalone basis, the fair value of this service is $200 per unit installed. The contract payment also includes a $10 per month service plan for 3 years after installation (Rollomatic's cost to provide this service is $7 per month). The Grind Smarts are delivered and installed on March 1, 2025, and full payment is made to Rollomatic. Any discount is applied to the product/installation bundle. Rollomatic ships 300 Grind Smarts to Home Depot on consignment. By March 31, 2025, Home Depot has sold two-thirds of the consigned merchandise at the listed price of $1,200 per unit. Home Depot notifies Rollomatics of the sales, retains a 5% commission, and remits the cash due Rollomatics. REQUIRED: Determine Rollomatics' 2025 first-quarter net income. (Ignore taxes.)