9

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. $3,880,000 Sales Cost of sales: Direct material Direct labor Variable overhead Fixed overhead Gross profit Selling and General & Admin. Exp. Variable Fixed Operating income $538,000 440,000 294,000 790,000 2,062,000 $1,818,000 788,000 288,000 1,076,000 $ 742,000 For the coming year, the management of Evergreen Corporation anticipates a 5 percent decrease in sales, a 10 percent increase in all variable costs, and a $64,000 increase in fixed costs. The operating profit for next year would be: Multiple Choice $631,750 test Questione trouwtartha mirarm enimmar 2013 For the coming year, the management of Evergreen Corporation anticipates a 5 percent decrease in sales, a 10 percent increase in all variable costs, and a $64,000 increase in fixed costs. The operating profit for next year would be: Multiple Choice $631,750. $353,000 $293,000 $278,000