4) Gardner Corporation manufactures skateboards and is in the process of preparing next...
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Accounting
4)
Gardner Corporation manufactures skateboards and is in the process of preparing next year's budget. The pro forma income statement for the current year is presented below.
Sales $1,500,000
Cost of sales:
Direct Material $250,000
Direct labor 150,000
Variable Overhead 75,000
Fixed Overhead 100,000575,000
Gross Profit $925,000
Selling and G&A
Variable 200,000
Fixed 250,000450000
Operating Income 475000
The break-even point (rounded to the nearest dollar) for Gardner Corporation for the current year is:
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