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The answer for this problem is found by calculating the next year's budgeted sales, budgeted variable costs and budgeted fixed costs and then dividing the total budgeted fixed costs by the budgeted contribution margin ratio (i.e., percentage). Current year sales are $1,500,000, so a 10% increase would be $1,650,000 ($1,500,000 × 110%). Current year variable costs are $250,000 + $150,000 + $75,000 + $200,000, or $675,000. So a 12% increase would be $675,000 × 112%, or $756,000. Thus, the budgeted contribution margin would be $1,650,000-$756,000, or $894,000. The budgeted contribution margin ratio is therefore $894,000 / $1,650,000, or .54181818. Total fixed cost for the current year is $100,000 + $250,000, or $350,000. The budgeted fixed cost is $350,000 + $45,000, or $395,000. Therefore, the breakeven point in revenue for next year's budget would be $395,000 / .54181818 = $729,027.
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The next year sales will increase 10%，and variable costs will increase 12%。Fixed overhead will be 350000，and fixed selling and G&A will be 45000.The breakeven point for next year will be