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

$1,017,136.

$369,051.

$574,000.

$884,060.