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TB MC Qu. 3-44 (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. 3-44 (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 $7.50 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 $5,640. 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. Based on a $10 selling price per unit and if Dorcan Corporation wishes to earn $38,145 in after tax net income for the coming year, the company's sales volume in dollars must be: Multiple Choice $28,575 $27615 Based on a $10 selling price per unit and if Dorcan Corporation wishes to earn $38,145 in after tax net income for the coming year, the company's sales volume in dollars must be: Multiple Choice $28,575 $27615 $30,015 $292150 O
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