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 100,000 575,000

Gross Profit $925,000

Selling and G&A

Variable 200,000

Fixed 250,000 450000

Operating Income 475000

The break-even point (rounded to the nearest dollar) for Gardner Corporation for the current year is: