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 variable costs,and a $45,000 increase in fixed costs.The break-even point for next year would be:
A)$3,022,500.
B)$2,947,500.
C)$2,668,750.
D)$2,168,225.

Question

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 variable costs,and a $45,000 increase in fixed costs.The break-even point for next year would be:
A)$3,022,500. 
B)$2,947,500. 
C)$2,668,750. 
D)$2,168,225.

Quizplus · Accepted Answer

The Answer of 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 variable costs,and a $45,000 increase in fixed costs.The break-even point for next year would be:
A)$3,022,500. 
B)$2,947,500. 
C)$2,668,750. 
D)$2,168,225.

Misa Corporation Manufactures Circuit Boards and Is in the Process