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Carla Vista sells T-shirts imprinted with high school names and logos. Last year the shirts sold for $39.00 each, and variable costs were $26.40 per
Carla Vista sells T-shirts imprinted with high school names and logos. Last year the shirts sold for $39.00 each, and variable costs were $26.40 per shirt. At this cost structure, the breakeven point was 40,000 shirts. However, the company actually earned $30,240 in net income This year, the company is increasing its price to $42.00 per shirt. Variable costs per shirt will increase by one-third, and fixed expenses will increase by $61,800. The tax rate will remain at 40%. Carla Vista sells T-shirts imprinted with high school names and logos. Last year the shirts sold for $39.00 each, and variable costs were $26.40 per shirt. At this cost structure, the breakeven point was 40,000 shirts. However, the company actually earned $30,240 in net income This year, the company is increasing its price to $42.00 per shirt. Variable costs per shirt will increase by one-third, and fixed expenses will increase by $61,800. The tax rate will remain at 40%
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