Barnes Corporation Manufactures Skateboards and Is in the Process of Preparing

Multiple Choice

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. For the coming year,the management of Barnes Corporation anticipates a 10 percent increase in sales,a 12 percent increase in variable costs,and a $45,000 increase in fixed costs.The break-even point for next year would be:

A) $729,027.
B) $862,103.
C) $214,018.
D) $474,000.