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 $3,500,000Cost of sales: Direct Material$500,000 Direct labor 250,000 Variable Overhead 275,000 Fixed Overhead 600,000 1,625,000Gross Profit $1,875,000Selling and General & Admin. Exp. Variable 750,000 Fixed 250,000 1,000,000Operating Income $875,000The break-even point (rounded to the nearest dollar) for Evergreen Corporation for the current year is:
A. $1,724,138.
B. $2,155,172.
C. $2,625,000.
D. $1,865,672.
Answer: A
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