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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
Sales for the coming year are expected to exceed last year’s by 1,000 units. If this occurs, Donnelly’s sales volume in the coming year will be