Business, 15.01.2020 06:31, sergiog6833

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 $1,500,000

cost of sales:

direct material $250,000

direct labor 150,000

variable overhead 75,000

fixed overhead 100,000 575,000

gross profit 925,000

selling and general & admin. exp.

variable 200,000

fixed 250,000 450,000

operating income 475,000

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 $45,000 increase in fixed costs. the break-even point for next year would be: a) $474,000. b) $214,018.
c) $729,027. d) $862, 103

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Gardner corporation manufactures skateboards and is in the process of preparing next year's budget....