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Kate Connor, a teacher at Meadow 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 Meadow 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 $7 each and are normally sold for $14 each.
Ms. Connor has decided to order 860 shirts.
Required:
a. If the school receives actual sales orders for 780 shirts, what amount of profit will the school earn? What is the cost of waste due to excess inventory? Profit ? Waste due to excess inventory $560.
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