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-ralsing project. The T-shirts are printed with a speclal Kemp School logo. In some years, the supply of T-shirts has been Insufficlent to satlsfy the number of sales orders. In other years, T-shirts have been left over. Excess T-shirts are normally donated to some charltable organization. T-shirts cost the school \$5 each and are normally sold for \$12 each. Ms. Shelton has decided to order 700 shirts. Required a. If the school recelves actual sales orders for 600 shirts, what amount of profit will the school earn? What is the cost of waste due to excess Inventory? b. If the school recelves actual sales orders for 800 shirts, what amount of profit will the school earn? What amount of opportunity cost will the school Incur? Required a. Prepare a schedule of cost of goods manufactured and sold. b. Calculate the amount of gross margin on the Income statement. Complete this question by entering your answers in the tabs below. Prepare a schedule of cost of goods manufactured and sold. Complete this question by entering your answers in the tabs below. Calculate the amount of gross margin on the income statement. Gwen Pet Supplies purchases its inventory from a varlety of suppliers, some of which require a slx-week lead time before deliverling the goods. To ensure that she has a sufficlent supply of goods on hand, Ms. Leblanc, the owner, must maintain a large supply of Inventory. The cost of this Inventory averages $67,000. She usually finances the purchase of Inventory and pays a 5 percent annual finance charge. Ms. Leblanc's accountant has suggested that she establish a relationship with a single large distributor who can satisfy all of her orders within a two-week time period. Glven this quick turnaround time, she will be able to reduce her average inventory balance to $17,000. Ms. Leblanc also belleves that she could save $9,000 per year by reducing phone bills, Insurance, and warehouse rental space costs assoclated with ordering and maintaining the larger level of Inventory. Required b. Based on the Information provided, how much of Ms. Leblanc's Inventory holding cost could be eliminated by taking the accountant's advice