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31 Dorcan Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last year, the shirts sold for $10.20 each, and the variable cost
31 Dorcan Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last year, the shirts sold for $10.20 each, and the variable cost to manufacture them was $5.20 per unit. The company needed to sell 21,800 shirts to break-even. The after tax net income last year was $5,580. Donnelly's expectations for the coming year include the following: (CMA adapted) The sales price of the T-shirts will be $13. Variable cost to manufacture will increase by one-third. Fixed costs will increase by 10%. The income tax rate of 40% will be unchanged. Sales for the coming year are expected to exceed last year's by 1,090 units. If this occurs, Dorcan's sales volume in the coming year will be: Multiple Choice 25,550 units 24,110 units 24,750 units Next >
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