Evergreen Corporation manufactures circuit boards and is in the process of preparing next year's budget....
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Accounting
Evergreen Corporation manufactures circuit boards and is in the process of preparing next year's budget. The pro forma income statement for the current year is presented below.
Sales - $3,500,00
Cost of sales:
Direct Material - $500,000
Direct Labor - 250,000
Variable overhead - 275,000
Fixed Overhead - 600,000
Total: 1,625,000
Gross Profit 1,875,000
Selling and General and Admin Exp
Variable - 750,000
Fixed - 250,000
Total - 1,000,000
Operating Income - $875,000
The break-even point (Rounded to the nearest dollar) for Evergreen Corporation for the current year is:
A. $2,625,000
B. $1,865,672
C. $1,724,138
D. $2,155,172
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