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TB MC Qu. 3-43 (Algo) Dorcan Corporation manufactures and sells T-shirts... Dorcan Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last year,
TB MC Qu. 3-43 (Algo) Dorcan Corporation manufactures and sells T-shirts... Dorcan Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last year, the shirts sold for $13.20 each, and the variable cost to manufacture them was $8.20 per unit. The company needed to sell 23,800 shirts to break-even. The after tax net income last year was $6,180. Donnelly's expectations for the coming year include the following: (CMA adapted) The sales price of the T-shirts will be $16. 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 1190 units. If this occurs, Dorcan's sales volume in the coming year will be
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