Question newham textiles manufactures and sells t-shirts, Ask an Expert

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Question: 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 per T-shirt will be £9.00. Variable expenses will increase by one third. Fixed expenses will increase by 10 per cent.

1. The selling price needed next year to maintain the same contribution margin ratio as last year is:

2. Sales for the coming year are expected to exceed last year's by 1,000units. if this occurs , Newham's sales volume in the coming year will be ?

3. If Newham wishes to earn $22,500 in net operating for the coming year , the company's sales volume in pounds must be?

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Accounting Basics, Accounting

Category:- Accounting Basics
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