What the number of t-shirts the company must sell

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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.

Problem 1: The number of T-shirts the company must sell to break even in the coming year is

Reference no: EM132791173

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