Rose Corporation manufactures a single electronic product called Precisionmix. This unit is a batch-density monitoring device attached to large industrial mixing machines used in flour, rubber, petroleum, and chemical manufacturing. Precisionmix sells for $900 per unit. The following variable costs are incurred to produce each Precisionmix device:

Direct labor $180

Direct materials 240

Factory overhead 105

Total variable production costs 525

Marketing costs 75

Total variable costs $600

Roses income tax rate is 40%, and annual fixed costs are $4,000,000.

Required:

a) If Rose Corporation achieves a sales and production volume of 8,000 units, determine the net income (loss).

b) Determine the annual sales revenue to achieve an after tax net income of $540,000.