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SkysongIndustries manufactures sump-pumps. Its most popular product is called the Super Soaker, which has a retail price of $1,230 and costs $580 to manufacture. It

SkysongIndustries manufactures sump-pumps. Its most popular product is called the Super Soaker, which has a retail price of $1,230 and costs $580 to manufacture. It sells the Super Soaker on a standalone basis directly to businesses. Skysong also provides installation services for these commercial customers, who want an emergency pumping capability (with regular and back-up generator power) at their businesses. Skysong also distributes the Super Soaker through a consignment agreement with Menards. Income data for the first quarter of 2017 from operations other than the Super Soaker are as follows.

Revenues $9,461,000
Expenses 7,828,000

Skysonghas the following information related to two Super Soaker revenue arrangements during the first quarter of 2017.

1. Skysong sells 3 Super Soakers to businesses in flood-prone areas for a total contract price of $58,800. In addition to the pumps, Skysong also provides installation (at a cost of $130 per pump). On a standalone basis, the fair value of this service is $180 per unit installed. The contract payment also includes a $10 per month service plan for the pumps for 3 years after installation (Skysongs cost to provide this service is $7 per month). The Super Soakers are delivered and installed on March 1, 2017, and full payment is made to Skysong. Any discount is applied to the pump/installation bundle.
2. During ships 270 Super Soakers to Menards on consignment. By March 31, 2017, Menards has sold two-thirds of the consigned merchandise at the listed price of $1,230 per unit. Menards notifies Skysong of the sales, retains a 5% commission, and remits the cash due Skysong.

(a)

New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is incorrect.

Determine Skysong Industries 2017 first-quarter net income. (Ignore taxes.)

Net income $

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