Becky Shelton, a teacher at kemp middle school is in charge of ordering the T-shirts to be sold for the school's annual fund-raising project the t-shirts are printed with a special kemp school logo. In some years the supply of T-shirts has been insufficient to satisfy the number of sales orders. In other years, T-shirts have been left over. excess T-shirts are normally donated to some charitable organization. T-shirts cost the school $7 each and are normally sold for $14 each. Ms Shelton has decided to order 790 shirts. Required 1) if the school receives actual sales orders for 715 shirts, what amount of profit will the school earn?what is the cost of waste due to excess inventory? 2) If the school receives actual sales orders for 830 shits, what amount of profit will the school earn? What amount of opportunity cost will the school incur? a) Profit $1,050 waste due to excess inventory b) Profit opportunity cost
Becky Shelton, a teacher at kemp middle school is in charge of ordering the T-shirts to be sold for the school's annual fund-raising project the t-shirts are printed with a special kemp school logo. In some years the supply of T-shirts has been insufficient to satisfy the number of sales orders. In other years, T-shirts have been left over. excess T-shirts are normally donated to some charitable organization. T-shirts cost the school $7 each and are normally sold for $14 each. Ms Shelton has decided to order 790 shirts.
Required
1) if the school receives actual sales orders for 715 shirts, what amount of profit will the school earn?what is the cost of waste due to excess inventory?
2) If the school receives actual sales orders for 830 shits, what amount of profit will the school earn? What amount of opportunity cost will the school incur?
a) Profit $1,050
waste due to excess inventory
b) Profit
opportunity cost
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
