Question
Printech Company print elaborated, high-quality color brochures in its facility, located in Faisalabad, Pakistan. It primarily served businesses in the Urban Sindh, although it did
Printech Company print elaborated, high-quality color brochures in its facility, located in Faisalabad, Pakistan. It primarily served businesses in the Urban Sindh, although it did have some clients in south Punjab and as far east as the Gawadar Bay. Production at its Faisalabad facility was running at around full capacity: 150,000 brochures a month. Junaid owned and managed the company. He employed one sales representative and one printing-press operator, although he frequently relied on temporary labor to help in the printing process as needed to accommodate any changes in printing volume. Junaid believed that many of his costs were fixed, but that some costs varied with the number of brochures he printed and sold. Table 1 contains information related to Printech's monthly operating costs for the company's current activity level of 150,000 brochures a month. The company typically priced its printing services at an average of 17 PKR per 100 brochures printed. Historically, Junaid had encountered little variation in pricing from job to job, although occasionally special situations did arise. He wondered how he should handle those special situations. He did not have a "rule of thumb" he could apply, but he wished he could find one.
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