Break-Even in Sales Revenue, Changes in Variables Carmichael Corporation is in the process of preparing next year's budget. The pro forma income statement Sales Cost of sales $1,800,000 Direct materials Direct labor Variable overhead Fixed overhead $250,000 180,000 106,000 100,000 636,000 Gross profit $1,164,000 Selling and administrative expenses Variable $400,000 750,000 350,000 Operating income Required 1. What is the break -even sales revenue for Carmichael Corporation for $414,000 break even sales revenue for Carmichael Corporation for the current year? In your calculations, carry the contribution margin ratio to two decimal places. 2. For the coming year, the management of Carmichael Corporation anticipates an 8 percent increase in variable costs and a $60,000 increase in fixed expenses. What is the break In your computation, round the contribution margin ratio to four decimal places. Round your final answer to the nearest dollar. (CMA adapted) 250,000 00,000 1,164,000 of carmichael Corporation antkcipates an 8 percent increase in variable costs and a $60,000 increase in fixed expenses. What is the break-even point in