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Evergreen Corporation manufactures circuit boards and is in the process of preparing next year's budget

Accounting

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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   $3,800,000Cost of sales:     Direct material$530,000   Direct labor 400,000   Variable overhead 290,000   Fixed overhead 750,000  1,970,000Gross profit   $1,830,000Selling and General & Admin. Exp.     Variable 780,000   Fixed 280,000  1,060,000Operating income   $770,000

For the coming year, the management of Evergreen Corporation anticipates a 5 percent decrease in sales, a 10 percent increase in variable costs, and a $60,000 increase in fixed costs.

The break-even point for next year would be: