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Crane sells T-shirts imprinted with high school names and logos. Last year the shirts sold for $26 each, and variable costs w– Chapter 03 Graded Assignment Question 2 of 5 < > 15/20 III Operating Income 36000 Income Tax 14400 Net Income/(Loss) $ 2160Question 2 of 5 < > 15 / 20 Your answer is correct. How many T-shirts must the company sell this year to break even? (Use the

How many T-shirts must the company sell this year in order to earn $56,640 in net income?

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Answer #1
Unit sales neede to attain target profit =           164,467 T - shirts
Workings:
Contribution per unit = $             10.36
Fixed cost = $     1,647,240
Target Profit = $           56,640
Unit sales neede to attain target profit = (Fixed cost +Target Profit) / Contribution per unit
= ($1647240 + $56640) / $10.36
=           164,467 T - shirts
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