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 100,000 575,000 Gross Profit $ 925,000 Selling and General & Admin. Exp. Variable 200,000 Fixed 250,000 450,000 Operating Income $ 475,000For the coming year, the management of Gardner Corporation anticipates a 10 percent increase in sales, a 12 percent increase in variable costs, and a $45,000 increase in fixed costs. The break-even point for next year (rounded to the nearest dollar) would be: $474,000. $729,027. $862,103. $214,018.
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 100,000 575,000
Gross Profit $ 925,000
Selling and General & Admin. Exp.
Variable 200,000
Fixed 250,000 450,000
Operating Income $ 475,000For the coming year, the management of Gardner Corporation anticipates a 10 percent increase in sales, a 12 percent increase in variable costs, and a $45,000 increase in fixed costs.
The break-even point for next year (rounded to the nearest dollar) would be:
$474,000.
$729,027.
$862,103.
$214,018.
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