Becky shelton, a teacher at kemp 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 kemp 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 $5 each and are normally sold for $12 each. ms. shelton has decided to order 700 shirts. requiredif the school receives actual sales orders for 600 shirts, what amount of profit will the school earn? what is the cost of waste due to excess inventory? if the school receives actual sales orders for 800 shirts, what amount of profit will the school earn? what amount of opportunity cost will the school incur?

Lo.2, 3, 9 lori, who is single, purchased 5-years class property for $200,00 and 7-years class property for $420,000 on may 20, 2018. lori experts the taxable income derived form the business (without regard to the amount expensed under ⧠179) to be about $550,000. lori has determined that she should elect immediate ⧠179 expensing in the amount of $520,000, but she doesn’t know which asset she should completely expense under ⧠179. she does not claim any available additional first-year depreciation. a. determine lori’s total cost recovery deduction if the ⧠179 expense is first taken with respect to the 5-year class asset. b. determine lori’s total cost recovery deduction if the ⧠179 expense is first taken with respect to the 7-year class asset. c. what is your advice for lori? d. assume that lori is in the 24% marginal tax bracket and that she uses ⧠179 on the 7-year asset. determine the present value of the tax savings from the depreciation deductions for both assets. see appendix g for present value factors, and assume a 6% discount rate. e. assume the same facts as in part (d), except that lori decides not to use ⧠179 on either asset. determine the present value of the tax savings under this choice. in addition, determine which option lori should choose. f. present your solution to parts (d) and (e) of the problem in a spreadsheet using appropriate microsoft excel formulas. e-mail your spreadsheet to your instructor with a two-paragraph summary of your findings.