Quality Products Produces and Sells Screen-Printed T-Shirts to Local Organizations

question 22

Essay

Quality Products produces and sells screen-printed t-shirts to local organizations. The normal sales price per shirt is $12. Due to setup costs, they only accept orders of at least 100 shirts. The setup cost per order is $40 and the variable costs per shirt are $3. Fixed overhead costs per month total $2,000. Quality Products has the capacity to screen-print as many as 5,000 shirts per month, but is currently producing around 3,000. On May 1, the company was approached by a local non-profit group who wishes to place a single order for 100 shirts. The non-profit group has indicated that they can only pay $5 per shirt.
Required:

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Definitions:

Benefit

An advantage or profit gained from something.

Morality

A system of beliefs and principles concerning the distinction between right and wrong or good and bad behavior.

Institution

A structured and established organization or foundation, often societal or public, that serves a specific purpose, such as educational, financial, religious, or governmental.

Veil Of Ignorance

A philosophical tool proposed by John Rawls to ensure impartiality in ethical decision-making by imagining oneself ignorant of personal characteristics.