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WellBeing Magazine (based in Sydney, Australia) is Australia's most respected natural health and lifestyle magazine. It publishes twelve (12) print/hardcopy magazines every year. With the
WellBeing Magazine (based in Sydney, Australia) is Australia's most respected natural health and lifestyle magazine. It publishes twelve (12) print/hardcopy magazines every year. With the ever increasing cost of printing, Well Being is considering closing down its print magazines and only selling ezine (e-magazines) online. Wellbeing owns the printing department which employs 10 additional staff. The data relating to the two scenarios are as follows: Keep Print Only sell Online Magazines Publications $5 $0 $12 $6 520 000 390 000 $10 000 $10 000 $100 000 $0 Printing Cost per Magazine Revenue per Magazine Expected Number of Magazines Sold Total Cost per Magazine (feature writers, Editors etc.) Asset Value of Printer Resources & Materials Cost to close down printing Number of employees Waste per Magazine (printing cartridges, plastic etc.) Delivery time to customer time issue is completed to available for customer to read) N/A $80 000 64 32 3 kg O kg 10 days 1 day (includes uploading and (including printing and delivery) quality checks) Management at WellBeing need to decide whether to continue operating the Print Magazine or close it down and only sell online magazines. b) If you were making your recommendation to the management team based on the social and environmental impact which option would be the most attractive? Please include your calculations and analysis to justify your response [7.5 marks] c) What would be your final recommendation to the management team of Wellbeing Magazine? [5 marks] Required: a) Which option is most financially sustainable? Please include your calculations and analysis to justify your response (7.5 marks]
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