et pie Evergreen Corporation manufactures circuit boards and is in the process of preparing next year's budget. The proforma Income statement for the current year is presented below. $3,500,000 $500,000 250,000 275,000 600,000 Cost of sales: Direct Material Direct labor Variable Overhead Fixed Overhead Gross Pront Selling and General & Admin. Exp. Variable Fixed Operating Income 1,625,000 51,875,000 750,000 250,000 $ 1,000,000 875,000 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 $45,000 Increase in fixed costs. The break-even point for next year would be: $2,668,750 O $3,022,500 0 $2,168,225 O $2,947,500