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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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