chapter 10 # 1

Exercise 10-16A (Algo) Using JIT to minimize waste and lost opportunity LO 10-6 Becky SheHon, a teacher at Kemp Middle School, is in charge of ordering the Tishirts to be sold for the school's annual fund raising project. The T-shirts are printed with a special Kemp School logo, In some years, the supply of T-shirts has been insulticient to satisfy the number of sales orders, In other years, T-shirts have been left over. Excess T-shirts are normally donated to some chartable organization. T-shirts cost the school $7 each and are normaly scld for $14 each. Ms. Shelton has decided to order 720 ahirts Required a. If the school receives actual sales orders for 655 shirts, What amount of profit will the school earn? What is the cost of waste due to excess inventory? b. If the school recelves actual sales orders for 735 shirts, what amount of proft will the school earn? What amount of opportunity cost will the school incur