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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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