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				$	3,500,000
Cost of sales:
Direct Material	$	500,000
Direct labor		250,000
Variable Overhead		275,000
Fixed Overhead		600,000			1,625,000
Gross Profit				$	1,875,000
Selling and General & Admin. Exp.
Variable		750,000
Fixed		250,000			1,000,000
Operating Income				$	875,000

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

Multiple Choice

• $2,625,000.

• $2,155,172.

• $1,724,138.

• $1,865,672.