What is the first quarter income?

QUESTION #1 Rollomatics Company manufactures cutting tools. Its most popular product is called the Grind Smart, which has a retail price of $1,200 and costs $540 to manufacture. It sells the Grind Smart on a standalone basis directly to businesses. Rollomatics also provides installation services for these commercial customers. Rollomatics also distributes the Grind Smart through a consignment agreement with Home Depot. Income data for the first quarter of 2025 from operations other than the Grind Smart are as follows. Revenues Expenses 7,750,000 Rollomatics has the following information related to two Grind Smart revenue arrangements during the first quarter of 2025. Rollomatics sells 30 Grind Smarts to businesses for a total contract price of $54,600. In addition, Rollomatics also provides installation (at a cost of $150 each). On a standalone basis, the fair value of this service is $200 per unit installed. The contract payment also includes a $10 per month service plan for 3 years after installation (Rollomatic's cost to provide this service is $7 per month). The Grind Smarts are delivered and installed on March 1, 2025, and full payment is made to Rollomatic. Any discount is applied to the product/installation bundle. Rollomatic ships 300 Grind Smarts to Home Depot on consignment. By March 31, 2025, Home Depot has sold two-thirds of the consigned merchandise at the listed price of $1,200 per unit. Home Depot notifies Rollomatics of the sales, retains a 5% commission, and remits the cash due Rollomatics. REQUIRED: Determine Rollomatics' 2025 first-quarter net income. (Ignore taxes.)