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.