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Becky Shelton, a marketing coordinator for Douglass Enterprises, is in charge of ordering the T - shirts to be sold for the company's annual fund
Becky Shelton, a marketing coordinator for Douglass Enterprises, is in charge
of ordering the Tshirts to be sold for the company's annual fundraising
project. The Tshirts are printed with a special Douglass Enterprises logo In
some years, the supply of Tshirts has been insufficient to satisfy the number of
sales orders. In other years, Tshirts have been left over. Excess Tshirts are
normally donated to some charitable organization. Tshirts cost the company
$ each and are normally sold for $ each. Ms Shelton has decided to order
shirts.
Required
a If the company receives actual sales orders for shirts, what amount of
profit will the company earn? What is the cost of waste due to excess
inventory?
b If the company receives actual sales orders for shirts, what amount of
profit will the company earn? What amount of opportunity cost will the
company incur?
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