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.

Sales				$	1,780,000
Cost of sales:
Direct material	$	290,000
Direct labor		190,000
Variable overhead		81,000
Fixed overhead		140,000			701,000
Gross profit				$	1,079,000
Selling and general & admin. Exp.
Variable		240,000
Fixed		290,000			530,000
Operating income				$	549,000

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 $49,000 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

$369,051.

$574,000.

$884,060.

$1,017,136.