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Mark, the owner of a local poster shop, comes to you for help. We've only been breaking even the past two years, and I'm
Mark, the owner of a local poster shop, comes to you for help. "We've only been breaking even the past two years, and I'm getting very frustrated! I don't know what to do because I feel like I've already tried to improve our processes as much as possible, but we still haven't been able to generate a profit. Do you have any suggestions as to how we can turn things around? I just don't think we can even consider moving forward with this business unless we can earn $9,000 in operating income next year. Even then, we'll have to think long and hard about what the future holds." Mark shares the following information with you, as you ponder different scenarios to help your friend. Selling price $7.00 Cost for paper, per unit 0.75 Cost for printing, per unit 0.85 Cost for film, per unit 0.50 Staff salaries 46.000 Other operating costs 12,310 After thinking about it for a while, you suggest the following possibilities to help him turn things around.
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