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Dorcan Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last yeam the shirts sold for $7.80 each, and the variable cost to
Dorcan Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last yeam the shirts sold for $7.80 each, and the variable cost to manufacture them was $2.80 per unit. The compa needed to sell 20,200 shirts to break-even. The after tax net income last year was $5,100. Donnelly's expectations for the coming year include the following: (CMA adapted) .The sales price of the T-shirts will be $10. . 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 1,010 units. If this occurs, Dorcan's sales volume in the coming year will be: 922) . Multiple Choice 22,910 units. 21,310 units 23,710 units. 22.270 units)
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