Photo Graphic Images, Inc. (PGI), is an international supplier of graphic and photo images that are used
Question:
The computer operations at each of the operating locations consist of both large and small computer servers where the images are stored, the company website is maintained, and the business records are kept. There is capacity at each location to increase the number of servers as demand increases, though the capacity for expansion is limited in the current facility in Austin.
Required
1. Assuming PGI's output volume is measured by the number of customer orders, provide some examples of the volume-based costs of this company.
2. How does the relevant range apply within this company?
3. How does the growth of PGI globally affect the firm's total costs (consider also foreign currency fluctuations)?
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Related Book For
Cost Management A Strategic Emphasis
ISBN: 978-0078025532
6th edition
Authors: Edward Blocher, David Stout, Paul Juras, Gary Cokins
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