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Kittle Corporation produces and sells T-shirts imprinted with High School names and slogans. In the prior year, the shirts sold for $8.00 each, and the
Kittle Corporation produces and sells T-shirts imprinted with High School names and slogans. In the prior year, the shirts sold for $8.00 each, and the variable cost to manufacture them was $3.75 per unit. The company needed to sell 20,000 shirts to break-even. The after-tax net income last year was $5,460. Kittle's expectations for the coming year include the following: 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. Based on a $10 selling price per unit and if Kittle Corporation wishes to earn $45,318 in after tax net income for the coming year, the company's sales volume in dollars is closet to: $338,060. $255,000. $346,850. None of the answers provided are within $10,000 of the correct answer. $278,800
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