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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

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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. $3,680,000 Sales Cost of sales: Direct material Direct labor Variable overhead Fixed overhead Gross profit Selling and General & Admin. Exp. Variable Fixed Operating income $518,000 340,000 284,000 690,000 1,832,000 $1,848,000 768,000 268,000 1,036,000 $ 812,000 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 $54,000 increase in fixed costs. The operating profit for next year would be: Multiple Choice $383,000. $398,000. $458,000

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