A company is considering the closure of its internal printing department. The department prints all of the company’s publicity material and it also carries out other printing jobs as required. Following data is related to internal printing cost and external company's offer price for all of the company's printing needs.

Total sheets of customized paper used in a month	100000
cost of sheet	0.1
Customised paper contract notice period	3
Resale price of customised paper	0.03
Litres of Fluorescent ink used in a month	600
Cost of Fluorescent ink per litre	2
Fluorescent ink contract notice period (months)	1
Resale price per litre of Fluorescent ink	0.4
Other paper and material costs	5000
Rent of printing machinery	5500
Total Machine hours per month	120
Machinery rental contract notice period (months)	3
Employees costs (fixed in nature)	1200
Variable overhead cost per machine hour	4
Fixed overhead cost per machine hour (apportioned)	5
External Company's offered cost of printing	10000
In the below table, calculate Long term incremental cost/benefit if company opt for Printing department closure.
Relevant costs of internal printing	Amount
Customised paper	Answer
Fluorescent ink	Answer
Other paper and material	Answer
Machine rental	Answer
Labor costs	Answer
Variable overhead	Answer
Fixed overheads	Answer
Total relevant cost of internal printing	Answer
Cost of external printing services	Answer
Monthly saving from closure	Answer
In the below table, prepare month wise (Month from now) incremental cost/benefit if company opt for Printing Department Closure.
Relevant costs of internal printing	Month 1	Month 2	Month 3	Month 4
Customised paper	Answer	Answer	Answer	Answer
Revenue from sale of excess paper	Answer	Answer	Answer	Answer
Fluorescent ink	Answer	Answer	Answer	Answer
Revenue from sale of excess ink	Answer	Answer	Answer	Answer
Other paper and material	Answer	Answer	Answer	Answer
Machine rental	Answer	Answer	Answer	Answer
Labor costs	Answer	Answer	Answer	Answer
Variable overhead	Answer	Answer	Answer	Answer
Fixed overheads	Answer	Answer	Answer	Answer
Total relevant cost of internal printing	Answer	Answer	Answer	Answer
Cost of external printing services	Answer	Answer	Answer	Answer
Monthly saving from closure	Answer	Answer	Answer	Answer

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