Gardner Corporation manufactures skateboards and is in the process of preparing next year's budget. The pro forma income statement for the current year is presented below. $2,690,000 Sales Cost of sales: Direct material Direct labor Variable overhead Fixed overhead Gross profit Selling and general & admin. Exp. Variable Fixed Operating income $ 420,000 320,000 100,500 270,000 1,110,500 $1,579,500 370,000 420,000 790,000 $ 789,500 For the coming year, the management of Gardner Corporation anticipates a 10 percent increase in sales, a 12 percent increase in variable costs, and a $62,000 increase in fixed costs. The break-even point for next year (rounded to the nearest dollar) would be: (Do not round intermediate calculations.) Multiple Choice O $899,000 $872,910 O o $1,387,919. $1,520,995