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Business, 17.07.2019 00:20 zay65307

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. sales $ 3,500,000 cost of sales: direct material $ 500,000 direct labor 250,000 variable overhead 275,000 fixed overhead 600,000 1,625,000 gross profit $ 1,875,000 selling and general & admin. exp. variable 750,000 fixed 250,000 1,000,000 operating income $ 875,000 for the coming year, the management of evergreen corporation anticipates a 5 percent decrease in sales, a 10 percent increase in all variable costs, and a $45,000 increase in fixed costs. the operating profit for next year would be:

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