* Note that the cost of the unprinted T-shirt is the same for both options and is therefore irrelevant.

* The analysis shows there is an $880 advantage to reprinting the shirts rather than selling the
defective shirts to discount stores.

II. Strategic Analysis

* TTS management must carefully consider these strategic issues in addition to the information
provided in the relevant cost analysis

* Strategic concerns arise when considering selling to discount stores and some questions often
arise :-

* Will this affect the sale of T-shirts in retail stores? Will the cost of packing, delivery, and sales
commissions differ for these two types of sales?