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 $3,540,000 $504,000 270,000 277,000 620,000 Cost of sales: Direct material Direct labor Variable overhead Fixed overhead Gross profit Selling and General & Admin. Exp. Variable Fixed Operating income 1,671,000 $1,869,000 754,000 254,000 1,008,000 $ 861,000 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 $47,000 increase in fixed costs. The break-even point for next year would be: Multiple Choice $2,602,285. $2,248,535. $2,323,535. $2,263,535