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				$	3,580,000
Cost of sales:
Direct material	$	508,000
Direct labor		290,000
Variable overhead		279,000
Fixed overhead		640,000			1,717,000
Gross profit				$	1,863,000
Selling and General & Admin. Exp.
Variable		758,000
Fixed		258,000			1,016,000
Operating income				$	847,000

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 $49,000 increase in fixed costs. The break-even point for next year would be:

Multiple Choice

• $2,404,643.

• $2,683,393.

• $2,344,643.

• $2,329,643.