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Dorcan Corporation Manufactures and Sells T-Shirts Imprinted with College Names

question 73

Multiple Choice

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 $2.25 per unit. The company needed to sell 20,000 shirts to break-even. The after tax net income last year was $5,040. 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, the number of T-shirts Dorcan Corporation must sell to break-even in the coming year is:

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Definitions:

Opposing Interpretations

Differing views or analyses of data, texts, or events, reflecting varied perspectives or understandings.

Inferential Statistics

A branch of statistics that allows us to make predictions or inferences about a population based on sample data.

Generalize

To draw broad conclusions from specific instances, making the information applicable to a larger group or situation.

Population

The total number of inhabitants of a particular town, area, country, or the total number of individuals within a specific group or category.