Reza estimates that one technician earning $30 per hour can add designs to ten towels an hour. The design materials are purchased in bulk for $300, which are enough for decorating around 200 towels. Reza isnt sure if designing towels adds anything to manufacturing overhead since the machinery and factory space is readily available. He wonders if it is worthwhile for Beach Gear to start adding designs to some or all of the picnic towels it produces.

Prepare a business report for Reza. Discuss all relevant issues, including pros and cons of each course of action. Outline any questions/inquiries which should be directed to Reza and why the information is important to certain decisions.