Quick Printing is a copying service outlet. The available capacity utilization of the equipment is 2,000...

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Quick Printing is a copying service outlet. The available capacity utilization of the equipment is 2,000 copies per hour; the equipment can only be used for a maximum of 7 hours per day. Quick Printing charges $0.07 per copy and has variable costs of $0.04 per copy. Quick Printing has on average a demand of 12,500 copies per day from its regular customer. Required: You must provide all the detailed supporting documentations. a. One day, a new customer comes in with an order for 6,000 copies and wants to pay $0.06 per copy. Should Quick Printing accept this special order? 1) b. If Quick Printing accepts the special order from this new customer (6,000 copies at $0.06 per copy); what is the required demand of copies from its regular customers if Quick Printing should earn an average day's income? Quick Printing is a copying service outlet. The available capacity utilization of the equipment is 2,000 copies per hour; the equipment can only be used for a maximum of 7 hours per day. Quick Printing charges $0.07 per copy and has variable costs of $0.04 per copy. Quick Printing has on average a demand of 12,500 copies per day from its regular customer. Required: You must provide all the detailed supporting documentations. a. One day, a new customer comes in with an order for 6,000 copies and wants to pay $0.06 per copy. Should Quick Printing accept this special order? 1) b. If Quick Printing accepts the special order from this new customer (6,000 copies at $0.06 per copy); what is the required demand of copies from its regular customers if Quick Printing should earn an average day's income?

Answer rating: 100% (QA)

a To determine if Quick Printing should accept the special order we need to calculate the contribution margin per unit of the special order and compar... View the full answer