Find the number of t-shirts the company must sell

Assignment Help Financial Accounting

Reference no: EM132798306

Question - Newham Textiles manufactures and sells T-shirts imprinted with college names and slogans. Last year, the shirts sold for £8.00 each, and the variable expense was £3.00 per unit.

The company needed to sell 20,000 shirts to break even. The operating profit last year was £10,000. Donnelly's expectations for the coming year include the following:

The selling price per T-shirt will be £12.00.

Variable expenses will increase by one third.

Fixed expenses will increase by 15 per cent.

Required - Find the number of T-shirts the company must sell to break even in the coming year?

Reference no: EM132798306

Questions Cloud

Construct a value weighted portfolio of three securities : You construct a value weighted portfolio of three securities. At time 0 the prices of Apple, Harley, and Blue Apron are $70, $30, and $150

Calculate the total material variance : Calculate the total material variance, the material price variance and the material usage variance and label as either "favourable" or "unfavourable"

What is the nominal annual rate of interest : What is the nominal annual rate of interest compounded quarterly if a loan of $23,500 is repaid in eight years by payments of $1,000 made at the end of every th

What is the monthly payment made by the client : The VC firm lends $500,000 to a client on a 2 year loan. What is the total interest paid by the client

Find the number of t-shirts the company must sell : The company needed to sell 20,000 shirts to break even. Find the number of T-shirts the company must sell to break even in the coming year

Determine the minimum required rate of return : Average Operating Assets - P100,000.00, Stockholder's Equity - P80,000.00 and Residual Income - P13,000.00. Determine the minimum required rate of return

Explain the analysis of risk and return : -Explain the analysis of risk and return. Then describe the two broad risk management strategies open to a financial institution.

What is the firm federal income tax : What is the firm's federal income tax? Do not round intermediate calculations. Round your answer to the nearest dollar. Please show work

Post the journal entries in t-accounts for raw materials : Post the journal entries in t-accounts for Raw Materials, Work in Process, Finished Goods, Manufacturing Overhead & Cost of Goods Sold

User Account

All Pages