Preview

FinePrint Company

Powerful Essays
Open Document
Open Document
607 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
FinePrint Company
FinePrint Company

John Johnson hung up the phone and began to contemplate the offer he had just received. Abbie Jenkins, a friend of Johnson’s and the owner of a small company in nearby Keswick, Virginia, had just called to see if Johnson’s printing company, FinePrint Company, could accommodate a special printing order next month.

Company Background

Johnson’s company, FinePrint Company, printed elaborate high-quality color brochures in its facility located in Charlottesville, Virginia. It primarily served other businesses in the central Virginia area, although it did have some clients in southwest Virginia and as far east as the Chesapeake Bay region of the state. Monthly production at its Charlottesville facility was running at around full capacity of 150,000 brochures per month. John Johnson 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. John felt that many of his costs were fixed, but that some costs varied with the number of brochures he printed and sold. Exhibit 1 contains information related to FinePrint’s monthly operating costs for the company’s current activity level of 150,000 brochures per month.

The company typically priced its printing services at an average of $17 per 100 brochures printed. Historically, Johnson 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 didn’t have a “rule of thumb” he could apply, but he wished he could find one.

The Special Order

In her phone call, Abbie Jenkins indicated that she needed a special job printed next month. She needed 25,000brochures related to a new product for distribution at three trade shows she was attending. When John quoted Abbie the usual price of $17 per 100

You May Also Find These Documents Helpful

  • Powerful Essays

    Platinum Box Ltd. is at a strategic juncture; it has enjoyed a phase of consistent growth over the last few years, and built on this growth is planning to expand operations to take advantage of new markets in the USA. Critically, the equipment (printing presses) that have enabled Platinum’s growth and success are approaching the end of their life-cycles, as evident in doubling of their maintenance costs over the last two years. If this equipment is not replaced in the near future, Platinum cannot expect to expand production or to effectively push into new markets.…

    • 2561 Words
    • 11 Pages
    Powerful Essays
  • Satisfactory Essays

    The Johnson Company is a small business that provides networking components and services. They are in need of new methods of communication for reaching out to new customers, standing out from other businesses, meeting existing customer needs, and keeping customers informed of news and updates. The Johnson Company still uses analog phone lines and still takes customer orders by hand. Their only current method of advertising is an ad in the yellow pages. They have reached out to our IT consulting firm to help them update their current business processes and communications…

    • 352 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    2. Ben is making wooden toys for the next arts and crafts sale. Each toy costs Ben $1.80 to make. If he sells…

    • 1433 Words
    • 13 Pages
    Good Essays
  • Good Essays

    comparable printers. Your boss, the Vice-President of Sales, told you that unless you can sell…

    • 903 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Case Study: Secret Acres

    • 450 Words
    • 2 Pages

    The case is mainly about a small comic book company, called Secret Acres that also sells books from independent distributors. Due some economic challenges, this company has to be really careful about the development of new products, in order to succeed. One of their challenges is selling enough books to push unit costs down, therefore, it would improve their net income and help the development of the company. Their uncertain future is also due the print publishing market, that is threaten by the introduction of e-readers and other solutions to substitute paper, however, they know that some consumers are attracted by the sensation of holding the real paper.…

    • 450 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Mendel Paper Company

    • 1378 Words
    • 5 Pages

    For computer paper for the next fiscal quarter, according to the information given by the superintendent, Mendel Paper Company will receive a profit of $240,000.00. If 30,000 units are produced and sold at $14.00 then the total sales will be $420,000.00. However it costs the company $6.00 to produce each unit. So, 30,000 units at $6.00 a unit costs the company $180,000.00. The total sales cost of $420,000.00 minus the cost of labor of $180,000.00 equals the profit of $240,000.00. News came in however from the vice-president of purchasing that the company has firm orders for 35,000 cartons of computer paper. So, if the company continues to sell each unit of computer paper at $14.00 then the total cost of sales is $490,000.00. It still costs Mendel Paper Company $7.00 to produce each unit, therefore costing the company $245,000.00. Making the total profit of computer paper $245,000.00.…

    • 1378 Words
    • 5 Pages
    Good Essays
  • Good Essays

    La's Gym Case Summary

    • 568 Words
    • 3 Pages

    Cobb Corporation produces three products, A, B and C. The normal volume is 900 units of A, 120 units of B and 180 units of C. The price per unit is $5, $7, $10, for products A, B, and C, respectively. The variable cost per unit is $2, $3, $4, for products A, B, and C. respectively. The total fixed costs are $5,800.…

    • 568 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Reiman Holding Corporation “Published magazines and books about cooking, gardening, country lifestyle, nostalgia and crafts” and was widely admired by the staff of Readers Digest. Reiman Corporation had a devoted fanbase and the majority of its magazines were written by their readers themselves. Because of this Reiman had seen strong and steady growth in the years prior to this case while other firms in this industry had seen a decline in sales and profits.…

    • 771 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Deluxe corporation was once the largest printer of paper checks in the US. However, around the past years it started to face difficulties primarily on its sale and earnings growth primarily because of alternative payments systems as online payments, credit and debit cards, etc.…

    • 491 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Sandwell Paper Analysis

    • 1438 Words
    • 6 Pages

    Sandwell Paper Company is a large paper wholesaler, which ties its roots to Omaha, Nebraska in the 1980s. The firm started in sales and distribution to its consumers and bought its paper from other wholesalers. Sandwell Paper Company grew as its sales grew and eventually became a warehouse operation of its own. The product line includes fine printing and industrial wrapping grades of paper. The fine printing paper line is the more profitable as well as specialized of the two parts of the paper product line. The printing line is profitable because printers don not want large inventories but want fast delivery and for this reason they are pay premium to wholesalers to keep inventories of wide range. They want to ideally have inventories of different grade sizes, weight and colors. In order to keep up with the sales growth, several divisions exist. There are operations in Bakersfield, San Diego and also San Francisco. Sandwell Paper Company is a dual house supplying both fine printing and industrial wrapping paper goods. The company also carries stocked plastics and other non paper items to promote unitized selling. (Sandwell Paper Company Case)…

    • 1438 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    FinePrint

    • 409 Words
    • 3 Pages

    1. FinePrint currently is operating at around full capacity: 150,000 brochures. Should Johnson accept the special order?…

    • 409 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Fundamentals of Economics

    • 1125 Words
    • 5 Pages

    A.: 1: If a secretary were hired to type the manuscript, they would have had the opportunity to provide a service at a price. We know that each good and service produced and brought to market has a price. That price serves as a measure of value for calculating total output; in this case, the task of completing the typing for this book.…

    • 1125 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Supply Chain Management

    • 1921 Words
    • 8 Pages

    In 1990’s, Hewlett-Packard faced several problems with inventory levels for the Deskjet Printer product line. This printer was produced in Vancouver’s facility and from there was shipped to a distribution center. HP has three distribution centers (DC), in North America, Asia Pacific and Europe that at the moment were filled of Deskjet stock.…

    • 1921 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Chronicles of a day in the life of a Royal Corp. salesperson Mary Jones part of the Royal Reproduction Center (RRC) division. The RRC division specializes in high quality turnaround copying and printing services. Division salespeople are responsible for selling copying/printing services the Royal 750 color copier and the Corporate Copy Center (CCC) concept which involves equipping a client company with a staff and copiers to operate an on premise reproduction operation. Focuses on Jones difficulty in selling the CCC concept. Presents the daily sales activities of a business to business salesperson and the buyer behavior process of two different types of services (CCC and printing) and a product (color copier). Also reveals the difficulty of selling a new concept typical problems that salespeople encounter and the importance of understanding buyer behavior and the purchase process of a new product.…

    • 1447 Words
    • 7 Pages
    Powerful Essays

Related Topics