VaughnIndustries manufactures sump-pumps. Its most popular product is called the Super Soaker, which has a retail price of $1,160 and costs $600 to manufacture. It sells the Super Soaker on a standalone basis directly to businesses. Vaughn also provides installation services for these commercial customers, who want an emergency pumping capability (with regular and back-up generator power) at their businesses. Vaughn 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 $9,152,000 7,377,000 Expenses Vaughnhas the following information related to two Super Soaker revenue arrangements during the first quarter of 2017. 1. Vaughn sells 3 Super Soakers to businesses in flood-prone areas for a total contract price of $52,500. In addition to the pumps, Vaughn also provides installation (at a cost of $150 per pump). On a standalone basis, the fair value of this service is $180 per unit installed. The contract payment also includes a $11 per month service plan for the pumps for 3 years after installation (Vaughn's 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 Vaughn. Any discount is applied to the pump/installation bundle. During ships 300 Super Soakers to Menards on consignment. By March 31, 2017, Menards has sold two-thirds of the consigned merchandise at the listed price of $1,160 per unit. Menards notifies Vaughn of the sales, retains a 5% commission, and remits the cash due Vaughn. 2. (a) Determine Vaughn Industries' 2017 first-quarter net income. (Ignore taxes.) Net income $