Donnelly corporation manufactures and sells t-shirts

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Donnelly Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last year, the shirts sold for $6.80 each, and the variable cost to manufacture them was $3.80 per unit. The company needed to sell 11,000 shirts to break even. The after-tax net income last year was $6,120. Donnelly's expectations for the coming year include the following:

  • The sales price of the T-shirts will be $8.3.
  • Variable costs to manufacture each unit will increase by 33%. .
  • Fixed costs will increase by 35%. .
  • The income tax rate of 40% will be unchanged..

Sales for the coming year are expected to exceed last year's by 1,850 units. If this occurs, Donnelly's sales volume in the coming year will be?

Reference no: EM13586254

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