Question
6. F Company manufactures and sells T-shirts. Last year, the shirts sold for $7.50 each, and the variable cost to manufacture them was $2.25 per
6. F Company manufactures and sells T-shirts. Last year, the shirts sold for $7.50 each, and the variable cost to manufacture them was $2.25 per unit. The company needed to sell 20,000 shirts to break even. The net income last year was $5,040. F Companys expectation for the coming year include the following:-The selling price of the T-shirts will be $9.00-Variable cost to manufacture will increase by one-third-Fixed costs will increase by 10%-The income tax rate of 40% will be unchanged What is the number of T-shirts that must be sold to break even in the coming year?
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