Gardner Corporation Manufactures Skateboards and Is in the Process of Preparing

Multiple Choice

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.
$\begin{array}{lr}\text {Sales}&&\$ 1,500,000\\\text {Cost of sales:}\\\text { Direct Material } & \$ 250,000 \\\text { Direct labor } & 150,000 \\\text { Variable Overhead } & 75,000 \\\text { Fixed Overhead } & 100,000&575,000\\\text { Gross Profit } & & \$ 925,000 \\\text { Selling and G\&A } & & \\\text { Variable } & 200,000 & \\\text { Fixed } & 250,000 & 450,000 \\\text { Operating Income } & & \$ 475,000\end{array}$
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The break-even point (rounded to the nearest dollar) for Gardner Corporation for the current year is:

A) $146,341.
B) $636,364.
C) $729,730.
D) $181,818.