ed Cost Accounting mework: Ch.13 HW ion list K stion 2 estion 3 estion 4 estion 5 Data table Reagan Reiter 11/28/23 8:06 PM Question 11, E13-24 (book/static) Part 1 of 3 > HW Score: 56.67%, 11.33 of 20 points O Points: 0 of 4 Save Gianni & Sons buys T-shirts in bulk, applies its own trendsetting silk-screen designs, and then sells the T-shirts to a number of retailers. Gianni wants to be known for its trendsetting designs, and it wants every teenager to be seen in a distinctive Gianni T-shirt. Gianni presents the following data for its first two years of operations, 2019 and 2020. (Click the icon to view the data.) Read the requirements. Requirement 1. Calculate the amount and cost of unused administrative capacity at the beginning of 2020, based on the actual number of customers Gianni served in 2020. First select the formula, then enter the appropriate amounts to calculate cost of unused administrative capacity at the beginning of 2020. = Cost of unused capacity Requirements 2019 2020 1. Number of T-shirts purchased 2. Number of T-shirts discarded 3. Number of T-shirts sold 215,000 15,000 200,000 245,000 1. 20,000 225,000 2. 4. Average selling price $ 30.00 $ 31.00 3. 5. Average cost per T-shirt $ 15.00 $ 13.00 6. Administrative capacity (number of customers) 4,500 7. Administrative costs $ 1,633,500 $ 4,250 1,593,750 8. Administrative cost per customer $ 363 $ 375 Administrative costs depend on the number of customers Gianni has created capacity to support, not on the actual number of customers served. Gianni had 3,600 customers in 2019 and 3,500 customers in 2020. Calculate the amount and cost of unused administrative capacity at the beginning of 2020, based on the actual number of customers Gianni served in 2020. Suppose Gianni can only add or reduce administrative capacity in increments of 250 customers. What is the maximum amount of costs that Gianni can save in 2020 by downsizing administrative capacity? What factors, other than cost, should Gianni consider before it downsizes administrative capacity? Print Done Clear all Check answer