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Speedy Print Shop is considering whether it should take a job to print 5,000 copies of an announcement. The costs associated with this special order
Speedy Print Shop is considering whether it should take a job to print 5,000 copies of an announcement. The costs associated with this special order have been identified as follows. Paper cost: 5,000 sheets at $0.01 each. Labor cost: The job will take 5 hours. This job must be done on a rush basis after regular business hours; the special labor rate will be $24 per hour. Printing plate cost: The cost to make a plate to print the announcements is $100. Printing press usage: Speedy has determined that maintenance costs and depreciation associated with the usage of the printing press is $10 per hour. If the printing press is not used, it does not need any maintenance and it does not depreciate. Building depreciation: Speedy normally allocates $5 of building depreciation for each direct labor hour worked on a job. However, the building depreciates strictly with the passing of time; printing one more job does not cause any extra building depreciation. Manager's salary: The manager makes $20 per hour, on average. However, the manager is on a salary and does not get paid extra for working extra hours. What is the minimum amount that Speedy Print Shop should charge?
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