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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?
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