Alternatives courses of action management for leftover

Assignment Help Business Management

Reference no: EM1333216

Prior to the 2009 Super Bowl, a Phoenix area retailer ordered 50,000 T-shirts that read: Arizona Cardinals-2009 Super Bowl Champs. The company paid $11.75 for each of the custom T-shirts. Following the loss of Arizona to the Pittsburg Steelers, the retailer found itself with 15,000 unsold T-shirts after the Super Bowl. Before the Super Bowl, the retailer was able to sell 35,000 of the T-shirts at an average per-unit price of $25. The company is currently deciding how to dispose of the 15,000 remaining T-shirts. The retailer has learned from one of its suppliers that each shirt could be reworked at an average cost of $5.50 per shirt (which involves removing the Super Bowl reference from the shirts). Management of the retailer believes the reworked shirts could be sold at an average price of $10.25 during the coming football season. Alternatively, the company could sell the shirts at an average price of $2.60 as scrap material.

a. Identify at least three alternatives courses of action management could take with regard to the leftover T-shirts.

b. Which costs are sunk in this decision?

c. Identify the relevant costs of each alternative you listed in part (a).

d. Based on your answer to part (c), what is the best alternative and what is the relative financial advantage of the best alternative over the second-best alternative?

Reference no: EM1333216

Questions Cloud

Tool utilized to improve decision making : Describe a decision tree and discuss how such a tool can be utilized to improve decision making.

Provide that the risk free interest rate premium on market : Barramundi Inc. stock is currently selling at $40 per share (its equilibrium price) provide that the risk free interest rate is 8% and the equilibrium risk premium on the market portfolio is 6%.

Theory of negligence in lawsuit case study : Discuss the negligence or other theory for recovery in the suit Chancit's widow has brought against Ford Motor Company, the makers of the Ford Fairlane.

Evaluate total amount of mary''s deductible expenses : What is the total amount of Mary's deductible expenses and Are the deductible expenses classified as for AGI or from AGI?

Alternatives courses of action management for leftover : Identify at least three alternatives courses of action management could take with regard to the leftover T-shirts.

Implement training and developing programs : How will the culture of the organization impact the training and development process and What are the major challenges of implementing training and developing programs?

Compute the price of the stock has a p-sales ratio : Compute the price of the stock. A stock has a P/Sales ratio of 3. Sales per share is $16. Find the price of the stock.

The inhibition theory : Use the inhibition theory to explain how a powerful person is different from that of a powerless person.

Who conducts the training and how often is it delivered : Conduct a phone or personal interview with a Training Manager and Ask them to explain the role that training and development plays in their company

User Account

All Pages