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Ruben Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last year, the shirts sold for $7.50 each, and the variable cost to

Ruben Corporation manufactures and sells T-shirts imprinted with college names and slogans. 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 operating profit last year was $5,040. Ruben's expectations for the coming year include the following:

  • The sales price of the T-shirts will be $9
  • Variable costs to manufacture will increase by one-third
  • Fixed costs will increase by 10%
  • The income tax rate of 40% will be unchanged

Required: The selling price that would maintain the same contribution margin ratio as last year is:

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