Kate Connor, a teacher at Meadow Middle School, is in charge of ordering the T-shirts to be sold for the schools annual fund-raising project. The T-shirts are printed with a special Meadow 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. Connor has decided to order 820 shirts.

Required
a.	If the school receives actual sales orders for 765 shirts, what amount of profit will the school earn? What is the cost of waste due to excess inventory?

Profit :

Waste due to excess inventory:

b.	If the school receives actual sales orders for 855 shirts, what amount of profit will the school earn? What amount of opportunity cost will the school incur?

Profit:

Opportunity Cost: