Misa Corporation Manufactures Circuit Boards and Is in the Process

Multiple Choice

Misa 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. For the coming year,the management of Misa 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:

A) $477,500.
B) $492,500.
C) $552,500.
D) $831,250.