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

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 $45,000 increase in fixed costs. The operating profit for next year would be:

		$492,500.
		$477,500.
		$831,250.
		$552,500.