Compute the company sales volume in pounds

Reference no: EM131770448

Question: Newham Textiles manufactures and sells T-shirts imprinted with college names and slogans. Last year, the shirts sold for £7.50 each, and the variable expense was £2.25 per unit. The company needed to sell 20,000 shirts to break even. The net operating income last year was £8,400. Donnelly's expectations for the coming year include the following: The selling price per T-shirt will be £9.00. Variable expenses will increase by one third. Fixed expenses will increase by 10 per cent.

1. The selling price needed next year to maintain the same contribution margin ratio as last year is:

2. Sales for the coming year are expected to exceed last year's by 1,000units. if this occurs , Newham's sales volume in the coming year will be ?

3. If Newham wishes to earn $22,500 in net operating for the coming year , the company's sales volume in pounds must be?

Reference no: EM131770448

Questions Cloud

Compute both basic and diluted earnings per share : The Novak Corporation issued 10-year, $4,910,000 par, 7% callable convertible subordinated debentures on January 2, 2017. The bonds have a par value of $1,000.

Discuss and compute the margin of safety in dollars : break-even sales are $6,632,000. Compute the margin of safety in dollars. Compute the margin of safety ratio

What is a monopoly and a monopsony : What is a monopoly and a monopsony. Why do those concerned with consumer and labor regulations pay attention to them?

What is the role of prices in a market economy : What is the role of prices in a market economy. what is the main shortcoming of a centrally planned economy?

Compute the company sales volume in pounds : Newham Textiles manufactures and sells T-shirts imprinted with college names and slogans. Last year, the shirts sold for £7.50 each, and the variable expense.

Determine or influence the recommendation for action : What theory do you agree with? How would that theory determine or influence the recommendation for action?

Discuss surgical equipment inventory : Guardian Medical Supplies Ltd has the following information for its surgical equipment inventory. The selling price of the inventory is $240

Generate a surplus or a shortage : How does a mismatch between price charged and actual equilibrium or market-clearing price tends to generate a surplus or a shortage?

Federal reserve to influence economic conditions : List and briefly describe each of the five (5) primary monetary policy tools used by the Federal Reserve to influence economic conditions during a recession

User Account

All Pages