Printit Co provides rapid printing and design services to the public and small businesses. The business, which has 12 employees, operates out of a high-street shop which includes office space. The company undertakes 400 to 500 jobs each month. It currently operates a full-cost-plus pricing system, and as each job is unique it must be priced individually. The accountant, who works part-time, is struggling to keep on top of the task of pricing each job. She has suggested that the company should move to a marginal-cost-plus pricing system as this would make pricing much easier.
Required:
Discuss the advantages and disadvantages for Printit Co of changing to a marginalcost-
plus pricing system from its existing full-cost-plus pricing system.