Discuss the donnellys expectations for the coming year


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?

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Accounting Basics: Discuss the donnellys expectations for the coming year
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