Misa Corporation Manufactures Circuit Boards and Is in the Process

question 14

Multiple Choice

Misa Corporation manufactures circuit boards and is in the process of preparing next year's budget.The pro forma income statement for the current year is presented below. For the coming year,the management of Misa Corporation anticipates a 5 percent decrease in sales,a 10 percent increase in variable costs,and a $45,000 increase in fixed expenses.
The break-even point for next year would be

• A)$3,022,500.
• B)$2,947,500.
• C)$2,668,750.
• D)$2,168,225.

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