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Donnelly Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last year, the shirts sold for $6.80 each, and the variable cost to
Donnelly Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last year, the shirts sold for $6.80 each, and the variable cost to manufacture them was $3.80 per unit. The company needed to sell 11,000 shirts to break even. The after-tax net income last year was $6,120. Donnelly's expectations for the coming year include the following:
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