Newham Textiles Manufactures and Sells T-Shirts Imprinted with College Names

question 63

Multiple Choice

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 of the T-shirts will be £9.00.
* Variable expenses will increase by one third.
* Fixed expenses will increase by 10 selling price
-If Newham wishes to earn £22,500 in net operating income for the coming year, the company's sales volume in pounds must be:

• A)£213,750
• B)£257,625
• C)£207,000
• D)£229,500

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Definitions:

Sales Growth

The percentage increase in sales over a specified period, indicating the performance and expansion of a company's sales activities.

Customer Complaints

Expressions of dissatisfaction or issues raised by customers regarding a product or service.

Benchmarking

The process of comparing business processes and performance metrics to industry bests or best practices from other companies.

Critical Success Factors

Essential conditions or variables that, when properly sustained, maintained, or managed, can have a significant impact on the success of a business or project.