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| Donnelly 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 net income last year was $5,040. Donnelly's expectations for the coming year include the following: The sales price of the T-shirts will be $9 Variable cost to manufacture will increase by one-third Fixed costs will increase by 10% The income tax rate of 40% will be unchanged The number of T-shirts Donnelly Corporation must sell to break even in the coming year is A. 19,250 B. 17,500 C. 20,000 D. Some amount other than those given. |