Surfers Company sells two year memberships to use its indoor surfing machines. For a one time payment of $1,200, an individual may use the basic machine up to 100 times and the advanced machine up to 40 times. In 2007, Surfers sold 50 memberships. Members used the basic machine 3,200 times and the advanced machine 800 times. Additional relevant costs are:

Calculate net income for 2007 using the proportional performance method. (Round to the nearest whole dollar.)

Initial direct costs $ 1,000 15,000 8,000 Direct cost per Basic machine use Advanced machine use $ 1.00 2.00