Denise Jensen is the editor-in-chief of her school's yearbook. The school has 1,200 students and 40 faculty

Question:

Denise Jensen is the editor-in-chief of her school's yearbook. The school has 1,200 students and 40 faculty and staff members. The firm engaged to print copies of the yearbook charges the school $20 per book and requires a 10-day lead time for delivery. Denise and her editors plan to order 1,000 copies to sell at the school fair for $30 each.
Required
a. If the school sells 900 yearbooks, what amount of profit will it earn? What is the cost of waste due to excess inventory?
b. If 100 buyers are turned away after all yearbooks have been sold, what amount of profit will the school earn? What amount of will the school incur?
c. How could Denise use a JIT inventory system to maximize profits by eliminating waste and Opportunity Cost
Opportunity cost is the profit lost when one alternative is selected over another. The Opportunity Cost refers to the expected returns from the second best alternative use of resources that are foregone due to the scarcity of resources such as land,...