Evergreen Corporation Manufactures Circuit Boards and Is in the Process

question 140

Multiple Choice

Evergreen 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. $$\begin{array} { | l | l | l | } \hline \text { Sales } & & \$ 3,500,000 \\\hline \text { Cost of sales: } & & \\\hline \text { Direct Material } & \$ 500,000 & \\\hline \text { Direct labor } & 250,000 & \\\hline \text { Variable Overhead } & 275,000 & \\\hline \text { Fiked Overhead } & \underline { 600,000 } & 1,625,000 \\\hline \text { Gross Profit } & & \$ 1,876,000 \\\hline \text { Selling and General \& Admin. Exp. } & & \\\hline \text { Variable } & 750,000 & \\\hline \text { Fiked } & 250,000 & 1,000,000 \\\hline \text { Operating Income } & & \$ 875,000 \\\hline\end{array}$$
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 $45,000 increase in fixed costs.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.

---

Definitions:

International Human Resources Management

The process of managing people across international boundaries, including recruitment, deployment, and development of global employees.

Internal Fit

The alignment between an organization's strategies, structures, and processes with its human resources policies and practices.

Workforce Diversity

The inclusion of a wide range of people in a workplace, reflecting differences in race, gender, age, culture, and other characteristics.

HR-Related Challenges

Issues or problems specifically related to the management of human resources in an organization, which may include recruitment, retention, training, and compliance.