Exercise $1-14$A $($Algo$)$ Using JIT to minimize waste and lost opportunity LO $1-5$

Becky Shelton, a marketing coordinator for Douglass Enterprises, is in charge of ordering the T$-$shirts to be sold for the company's annual fund$-$raising project. The T$-$shirts are printed with a special Douglass Enterprises 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 company $$7$ each and are normally sold for $$14$ each. Ms$.$ Shelton has decided to order $840$ shirts.

Required

a$.$ If the company receives actual sales orders for $765$ shirts, what amount of profit will the company earn? What is the cost of waste due to excess inventory?

b$.$ If the company receives actual sales orders for $880$ shirts, what amount of profit will the company earn? What amount of opportunity cost will the company incur?