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
Cost of sales:
Direct material	$	504,000
Direct labor		270,000
Variable overhead		277,000
Fixed overhead		620,000			1,671,000
Gross profit				$	1,869,000
Selling and General & Admin. Exp.
Variable		754,000
Fixed		254,000			1,008,000
Operating income				$	861,000

For the coming year, the management of Evergreen Corporation anticipates a 5 percent decrease in sales, a 10 percent increase in all variable costs, and a $47,000 increase in fixed costs. The operating profit for next year would be:

Multiple Choice

• $456,500.

• $471,500.

• $531,500.

• $810,250.