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# Ramo & Sons buys T-shirts in bulk, applies its own trendsetting silk-screen designs, and then sells...

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###### Ramo & Sons buys T-shirts in bulk, applies its own trendsetting silk-screen designs, and then sells...

Ramo & Sons buys T-shirts in bulk, applies its own trendsetting silk-screen designs, and then sells the T-shirts to a number of retailers. Ramo wants to be known for its trendsetting designs, and it wants every teenager to be seen in a distinctive Ramo T-shirt. Ramo presents the following data for its first two years of operations, 2016 and 2017. Click the icon to view the data.) Read the requirements. Requirement 1. Calculate the amount and cost of unused administrative capacity at the beginning of 2017. based on the actual number of customers Ramo served in 2017. First select the formula, then enter the appropriate amounts to calculate cost of unused administrative capacity at the beginning of 2017. = Cost of unused capacity Requirements Calculate the amount and cost of unused administrative capacity at the beginning of 2017, based on the actual number of customers Ramo served in 2017. Suppose Ramo can only add or reduce administrative capacity in increments of 250 customers. What is the maximum amount of costs that Ramo can save in 2017 by downsizing administrative capacity? What factors, other than cost, should Ramo consider before it downsizes administrative capacity? 3. What Print Done
More Info 2016 2017 203,000 3,000 251,000 4,000 247,000 27.00 200,000 26.00 \$ 1 2 3 4 5 6 7 8 Number of T-shirts purchased Number of T-shirts discarded Number of T-shirts sold (row 1 - row 2) Average selling price Average cost per T-shirt Administrative capacity (number of customers) Administrative costs Administrative cost per customer (row 7 / row 6) \$ 11.00 \$ 9.00 4,100 3,850 1.232,000 \$ 1.271,000 \$ 310 \$ \$ 320 Administrative costs depend on the number of customers Ramo has created capacity to support, not on the actual number of customers served. Ramo had 3,700 customers in 2016 and 3.600 customers in 2017.

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