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.
Sales (100 units at $100 a unit)
Cost of goods sold:
Direct labor (variable)
Variable factory overhead
Fixed factory overhead
Net operating income
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 expenses.
The break-even point for next year would be