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:

Tube Placement

The medical insertion of a tube into the body, for various purposes such as feeding, drainage, or access for surgical tools.

Refrigerated Formula

Infant formula that is stored under cool temperatures to preserve its quality and safety for consumption.

Nasogastric

Relating to or involving the nose and the stomach, especially referring to a tube passed through the nose to the stomach for feeding or drainage.

Enteric Tube

A tube used to deliver food, fluids, and medications directly into the stomach or small intestine.