How many T-shirts must the company sell this year in order to earn $28,980 in net income?


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How many T-shirts must the company sell this year in order to earn $28,980 in net income? 1 answer below » W Promotions sells T-shirts imprinted with high school names and logos. Last year the shirts sold for $18 each, and variable costs were $5.40 per shirt. At this cost structure, the breakeven point was 20,000 shirts. However, the company actually earned $15,120 in net income. This year, the company is increasing its price to $21 per shirt. Variable costs per shirt will increase by one-third, and fixed expenses will increase by $30,900. The tax rate will remain at 40%. Required Prepare a contribution format income statement for last year. How many T-shirts must the company sell this year to View complete question » W Promotions sells T-shirts imprinted with high school names and logos. Last year the shirts sold for $18 each, and variable costs were $5.40 per shirt. At this cost structure, the breakeven point was 20,000 shirts. However, the company actually earned $15,120 in net income. This year, the company is increasing its price to $21 per shirt. Variable costs per shirt will increase by one-third, and fixed expenses will increase by $30,900. The tax rate will remain at 40%. Required Prepare a contribution format income statement for last year. How many T-shirts must the company sell this year to break even? How many T-shirts must the company sell this year in order to earn $28,980 in net income? View less » Jun 11 2014 04:04 PM

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