Dorcan Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last year, the shirts sold for $7.68 each, and the variable cost to manufacture them was $2.25 per unit. The company needed to sell 21,800 shirts to break-even. The after tax net income last year was $5,580. Donnelly's expectations for the coming year include the following: The sales price of the T-shirts will be $10. Variable cost to manufacture will increase by one-third. Fixed costs will increase by 10%. The income tax rate of 40% will be unchanged. Based on a $10 selling price per unit, the number of T-shirts Dorcan Corporation must sell to break-even in the coming year is:.
a. 19,102 units.
b. 18,602 units.
c. 22,102 units.
d. 24,102 units.