Answer Happy

Fact pattern: Barnes 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. $562,500 Sales Cost of sales: Direct materials Direct labor Variable overhead Fixed overhead $93,750 56,250 28,125 37,500 (215,625) Gross profit Selling and G&A: $ 346,875 Variable Fixed $175,000 110,000 (285,000) Operating income $ 61,875 For the coming year, the management of Barnes Corporation anticipates a 15% increase in sales, a 16% increase in variable costs, and a $25,000 increase in fixed expenses. The breakeven point in dollars for next year will be (carry CM % to 6 places, round answer up to nearest dollar) NOTE: You will need to recast this as a contribution margin statement in order to get the CM percentage