Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Business Management Expert

Prior to 2009 Super Bowl, a Phoenix area retailer ordered 50,000 T-shirts that read: Arizona Cardinals-2009 Super Bowl Champs. The company paid $11.75 for each of the custom T-shirts. Following the loss of Arizona to the Pittsburg Steelers, the retailer found itself with 15,000 unsold T-shirts after the Super Bowl. Before the Super Bowl, the retailer was able to sell 35,000 of the T-shirts at an average per-unit price of $25. The company is currently deciding how to dispose of the 15,000 remaining T-shirts. The retailer has learned from one of its suppliers that each shirt could be reworked at an average cost of $5.50 per shirt (which involves removing the Super Bowl reference from the shirts). Management of the retailer believes the reworked shirts could be sold at an average price of $10.25 during the coming football season. Alternatively, the company could sell the shirts at an average price of $2.60 as scrap material.

a. Recognize at least three alternatives courses of action management could take with regard to the leftover T-shirts.
b. Which costs are sunk in this decision?
c. Identify the relevant costs of each alternative you listed in part (a).
d. Based on your answer to part (c), what is the best alternative and what is the relative financial advantage of the best alternative over the second-best alternative?

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M930853

Have any Question? 


Related Questions in Business Management

1 what can be said about the diversity of life in the

1. What can be said about the diversity of life in the splash zone compared to that of the submerged zone? There is less biodiversity in the splash zone because there is varying salinity. There is more diversity in the s ...

Inequality of income is greater in the united states than

Inequality of income is greater in the United States than in other capitalist countries. What do you think explains this? Is there something unjust about extreme inequality?

Write 350 to 700 word paper in which you investigate the

Write 350 to 700 word paper in which you investigate the interrelationship between the entertainment media and culture. Answer the following question In what way have various forms of entertainment media shaped American ...

A competitive firm in a perfectly competitive market

A competitive firm in a perfectly competitive market produces and sells hats. Last year, it produced and sold 1,000 hats at the equilibrium price of $10. It incurred average variable costs of $6 and earned total economic ...

Dust james owns and operates a 300-acre farm in northern

Dust James owns and operates a 300-acre farm in northern Maine. Having recently abandoned potato growing. Dusty plans to grow wheat, corn, oats, and soybeans, for the upcoming season. he wishes to grow at least 30,000 bu ...

A report must do more than just identify at-risk acts or

"A report must do more than just identify at-risk acts or hazardous conditions surrounding an incident." This statement is incomplete. This statement is true. This statement is false. This statement is ambiguous.

For a healthcare facility explain the benefits of utilizing

For a healthcare facility, explain the benefits of utilizing the ten necessary decision-support tools presented in Chapter 10 of your textbook. Your response must be at least 200 words in length.

Your organizations strategic plan calls for an aggressive

Your organization's strategic plan calls for an aggressive growth plan, requiring investment in facilities and equipment, growth in productivity, and labor over the next five years. It is your task to determine where, ou ...

In reflecting upon the idea of functionalism and its

In reflecting upon the idea of functionalism and its relationship to social stability in society, do you agree with concept of the model? In your discussion, specifically address the idea that because society's needs and ...

Tricarewhat are the three health care options of

TRICARE: What are the three health care options of TRICARE? What is the role of a TRICARE PCM (primary care manager)? WORKERS COMP: List at least 3 benefits from incorporating managed care into workers' compensation prog ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro