Raneiro & Sons buys T-sirts in bulk, applies its own trendsetting silk-screen designs, and then sells the T-shirtrs to a number of retailers. Raneiro wants to be known for its trendsetting designs, and it wants every teenager to be seen in a distinctive Raneiro T-shirt. Raneiro presents the following data for its first 2 years of operations, 2011 and 2012.

	2011	2012
1. Number of T-shirts purchased	213,060	253,000
2. Number of T-shirts discarded	12,060	14,500
3. Number of T-shirts sold (row 1-row 2)	201,000	238,500
4. Average selling price	$28	$29
5. Average cost per T-shirt	$13	$11
6. Administrative capacity (# of customers)	4,300	4,050
7. Administrative costs	1,419,000	1,377,000
8. Admin cost per customer (row 7 / row 6)	$330	$340

Administrative costs depend on the number of customers that Raneiro has created capacity to support, not on the actual nmber of customers served. Raneiro had 3,900 customers in 2011 and 3,800 customers in 2012.

1 - Calculate the amount and cost of unused administrative capacity at the beginning of 2012 based on the actual numbers of customers Raneiro served in 2012.

2 - Suppose Ranerio can only add or reduce administrative capacity in increments of 250 customers. What is the maximum amount of costs that Raneiro can save in 2012 by downsizing administrative capacity?

3 - What factors, other than cost, should Ranerio consider before it downsizes administrative capacity?