Master Inc. is a manufacturer of T-shirts imprinted with names and slogans. Based on last...
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Master Inc. is a manufacturer of T-shirts imprinted with names and slogans. Based on last year figures, the shirts sold for $7.50 each, and the variable cost to manufacture them was $2.25 per unit. The company had to sell 20,000 shirts to break-even. The net income after taxes last year was $5,040. 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 selling price that would maintain the same contribution margin ratio as last year is?
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