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If the company received actual sales orders for 745 shirts, what amount of profit will the company earn? What amount of opportunity cost will the company incur?

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Answer:If the company receives actual sales orders for 745 shirts, the company will earn a profit of $2,940. The cost of waste due to excess inventory would be $0 in this scenario. If the company receives actual sales orders for 820 shirts, the company will earn a profit of $4,960. The amount of opportunity cost incurred due to unmet demand would be $1,120.

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