Master Inc. is a manufacturer of T-shirts imprinted with names and slogans. Based on last...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Master Inc. is a manufacturer of T-shirts imprinted with names and slogans. Based on last year figures, the shirts sold for $7.50 each, and the variable cost to manufacture them was $2.25 per unit. The company had to sell 20,000 shirts to break-even. The net income after taxes last year was $5,040. Expectations for the coming year include the following:
The sales price of the T-shirts will be $9.
Variable cost to manufacture will increase by one-third.
Fixed costs will increase by 10%.
The income tax rate of 40% will be unchanged.
The selling price that would maintain the same contribution margin ratio as last year is?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
