Evergreen 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.
|Cost of sales:|
|Selling and General & Admin. Exp.|
For the coming year, the management of Evergreen Corporation anticipates a 5 percent decrease in sales, a 10 percent increase in all variable costs, and a $65,000 increase in fixed costs.
The operating profit for next year would be: