Question: A print shop is considering whether it should accept a special order to print 10,000 copies of an announcement. Below are the costs associated with
A print shop is considering whether it should accept a special order to print 10,000 copies of an announcement. Below are the costs associated with this order:
- Paper cost: 10,000 sheets at $0.02 each
- Labor cost: 7hours at $40 per hour
- Printing plate cost: $200
- Printing press usage: $5per hour
- Building depreciation: $10for each direct labor hour worked on a job
- Manager's salary: $30 per hour
What is the minimum amount that this print shop should charge for this job in order to cover all differential costs?
Step by Step Solution
There are 3 Steps involved in it
Lets calculate the minimum amount that the print shop should charge to cover all differential costs ... View full answer
Get step-by-step solutions from verified subject matter experts
