Madengrad Company manufactures a single electronic product called Precisionmix. This unit is a batch-density monitoring device attached to large industrial mixing machines used in flour, rubber, petroleum, and chemical manufacturing. Precisionmix sells for $900 per unit. The following variable costs are incurred to produce each Precisionmix device:

Direct labor                    $180

Direct materials                 240

Factory overhead                105

Total variable production costs   525

Marketing costs                   75

Total variable costs              $600

Madengrad's income tax rate is 40%, and annual fixed costs are $6,600,000. Except for an operating loss incurred in the year of incorporation, the firm has been profitable over the last 5 years.

If Madengrad Company achieves a sales and production volume of 8,000 units, the annual before-tax income (loss) will be

A. $(4,200,000)

B. $(2,520,000)

C. $1,780,000

D. $(420,000)