A. 2,865,721 B. 3,144,471 C. 2,805,721 D. 2,790,721 Sales Cost of sales: Direct material Direct labor Variable

 

A. 2,865,721

B. 3,144,471

C. 2,805,721

D. 2,790,721

Transcribed Image Text:

Sales Cost of sales: Direct material Direct labor Variable overhead Fixed overhead Gross profit Selling and General & Admin. Exp. Variable Fixed Operating income $530,000 400,000 290,000 750,000 780,000 280,000 $3,800,000 1,970,000 $1,830,000 1,060,000 $ 770,000 For the coming year, the management of Evergreen Corporation anticipates a 5 percent decrease in sales, a 10 percent increase in variable costs, and a $60,000 increase in fixed costs. The break-even point for next year would be: Sales Cost of sales: Direct material Direct labor Variable overhead Fixed overhead Gross profit Selling and General & Admin. Exp. Variable Fixed Operating income $530,000 400,000 290,000 750,000 780,000 280,000 $3,800,000 1,970,000 $1,830,000 1,060,000 $ 770,000 For the coming year, the management of Evergreen Corporation anticipates a 5 percent decrease in sales, a 10 percent increase in variable costs, and a $60,000 increase in fixed costs. The break-even point for next year would be:

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Sales 380000095 3610000 Variable cost of production 122000095110 1342000 ... View the full answer