Tabitha manufactures a product that sells very well. The capacity of her facility is 218,000 units per year. The fixed costs are $126,000 per year, and the variable costs are $12 per unit. The product currently sells for $17.

a. What total revenue is required for a net income of $485,000 per year?

Round to the nearest cent

b. If sales were at 40% of the capacity and the variable costs decreased by 25%, what would be the net income per year?

Round to the nearest cent