What is the cost of waste due to excess inventory

Assignment Help Financial Accounting

Reference no: EM131202856

Ann Kyser, a teacher at Hewitt Middle School, is in charge of ordering the T-shirts to be sold for the school’s annual fund-raising project. The T-shirts are printed with a special Hewitt 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 $12 each and are normally sold for $18 each. Ms. Kyser has decided to order 810 shirts.

(a-1) If the school receives actual sales orders for 735 shirts, what amount of profit will the school earn?

(a-2) What is the cost of waste due to excess inventory?

(b-1) If the school receives actual sales orders for 835 shirts, what amount of profit will the school earn?

(b-2) What amount of opportunity cost will the school incur?

Reference no: EM131202856

Questions Cloud

Determine the remaining parameters : An op amp low-pass filter is to have a cutoff frequency of 100 Hz and a gain of magnitude 50. Determine the remaining parameters if the capacitor is specified as C= 1 µF.

Explain the impact or benefit that was produced : Describe examples of organizational citizenship behavior that you have witnessed in the workplace. Explain the impact or benefit that was produced.

Find the voltage necessary at feed point : Find the voltage necessary at feed point to maintain 250 V At the far end. - Derive an expression for the power loss in a unifoimly loaded distributor fed at one end.

How schizophrenia relates to genetics or brain chemistry : Contrast the positive and negative symptoms of schizophrenia and explain why it is thought these different symptoms might have a different physiological foundation.

What is the cost of waste due to excess inventory : Ann Kyser, a teacher at Hewitt Middle School, is in charge of ordering the T-shirts to be sold for the school’s annual fund-raising project. The T-shirts are printed with a special Hewitt School logo. If the school receives actual sales orders for 7..

Design a 2-to-4 decoder with enable input : The selected output is equal to 0 (while all other outputs are equal to 1).

Calculate the sag from the taller of the two supports : Calculate the sag from the taller of the two supports which must be allowed so that the factor of safety shall be 5.

Design a three-line to eight-line decoder : Design a three-line to eight-line (3-to-8) decoder which will decode three input variables into eight outputs. An application of this decoder is a binary-to-octal conversion, where the input variables represent a binary number and the outputs repr..

How those responsibilities can affect ultimate objective : FIN200 Assignment - Explain how those responsibilities can affect ultimate objective of the company. The name of company you choose should start with the first letter of your first, last or middle name.

User Account

All Pages