Montly Cost at 150'000 Volume

Manufacturing Cost
Direct Material- Variable
Direct Labor -Variable
Direct Labor Fixed
Manufacturing Overhead- Variable
Manufacturing Overhead-Fixed
Total Manufacturing

$
6000
1500
3000
1500
3375
15375

Non Manufacturing Cost

Sales -Variable
Sales -Fixed
Corporated- Fixed
Total Non Manufacturing Cost
Total Cost

1500
1875
3750
7125
22500

*Standard offer $17 Per 100

* Unit Price 0.17 per 1 brouchers

Revenue (0.17*150000)
Less:
Variable Expeneses
Direct material
Direct Labor
Manufacturing Overhead
Sales-Variable
Less:
Fixed Cost
Direct Labor
Manuacturing Overhead
Sales-Fixed
Corporate- Fixed
Net Income

$ Cost per unit

25500

6000
1500
1500
1500
10500

0.04
0.01
0.01
0.01
0.07

3000
3375
1875
3750
12000
3000

0.02
0.0225
0.0125
0.025
0.08

Option 1: if accept the option 1 without outsourcing and increse the capaity
* Fine print produce 125000 for standard price brouchers
* Fine print product 25000 for special order's Abbie
*Sales commision of $1 per 100 brouchers will be reduced

Revenue (0.17*150000)
Less:
Variable Expeneses
Direct material
Direct Labor
Manufacturing Overhead
Sales-Variable
Less:
Fixed Cost
Direct Labor
Manuacturing Overhead
Sales-Fixed
Corporate- Fixed
Net Income

Standard Brouchers' Cost per unit

25500
0.17

6000
1500
1500
1500
10500

0.04
0.01
0.01
0.01
0.07

3000
3375
1875
3750
12000
3000

0.02
0.0225
0.0125
0.025
0.08

*Sales commision of $1 per 100 brouchers will be

Revenue (0.17*125000)
Revenue (0.10*25000)
Less:
Variable Expeneses
Direct material
Direct Labor
Manufacturing Overhead
Sales-Variable (1500-250)
Less:
Fixed Cost
Direct Labor
Manuacturing Overhead
Sales-Fixed
Corporate- Fixed
Net Income

$
21250
2500
23750

6000
1500
1500
1250
10250

3000
3375
1875
3750
12000
1500

* 25000 brouchers will be saved $250

$0.01 for 1 brouchers
$250 for 25000

$1 per 100 brouchers will be reduced

be saved $250

Option 2: Johnson can decided to increase it capacity from 150000 to 175000

Johnson accept the special offer with $10 for 100 brouchers
Fine print process standard broucher with the $17 for 100 broucheers

Revenue (0.17*150000)
Less:
Variable Expeneses
Direct material
Direct Labor
Manufacturing Overhead
Sales-Variable
Less:
Fixed Cost
Direct Labor
Manuacturing Overhead
Sales-Fixed
Corporate- Fixed
Net Income

Standard Brouchers' Cost per unit

25500

0.17

6000
1500
1500
1500
10500

0.04
0.01
0.01
0.01
0.07

3000
3375
1875
3750
12000
3000

0.02
0.0225
0.0125
0.025
0.08

Revenue (0.17*150000)
Revenue (0.10*25000)
Less:
Variable Expeneses standard
Direct material (0.04*150000)
Direct Labor (0.01*150000)
Manufacturing Overhead (0.01*150000)
Sales-Variable(0.01*150000)
Less:
Variable Expeneses special offer
Direct material (0.04*25000)
Direct Labor (0.01*25000)
Manufacturing Overhead (0.01*25000)
Sales-Variable((0.01*25000)-250)

Less:
Fixed Cost
Direct Labor
Manuacturing Overhead
Sales-Fixed
Corporate- Fixed
Net Income

$
25500
2500
28000

6000
1500
1500
1500
10500

1000
250
250
0
1500

3000
3375
1875
3750
12000
4000

*Sales commision of $1 per 10

* 25000 brouchers will be save

$0.01 for 1 brouchers
$250 for 25000

*Sales commision of $1 per 100 brouchers will be reduced

* 25000 brouchers will be saved $250

$0.01 for 1 brouchers

$250 for 25000

Option 3: Fine Print should outsourcing to SmallPrint Shop for this special offer
Small Print shop offer $8 per 100 brouchers

Revenue (0.17*150000)
Less:
Variable Expeneses
Direct material
Direct Labor
Manufacturing Overhead
Sales-Variable
Less:
Fixed Cost
Direct Labor
Manuacturing Overhead
Sales-Fixed
Corporate- Fixed
Net Income

Standard Brouchers'
Cost per unit
25500
0.17

6000
1500
1500
1500
10500

0.04
0.01
0.01
0.01
0.07

3000
3375
1875
3750
12000
3000

0.02
0.0225
0.0125
0.025
0.08

Revenue (0.17*150000)
Revenue (0.10*25000)
Less:
Variable Expeneses
Direct material (0.04*150000)
Direct Labor (0.01*150000)
Manufacturing Overhead (0.01*150000)
Sales-Variable(0.01*150000)
Cost of outsources (0.08* 25000)
Less:
Fixed Cost
Direct Labor
Manuacturing Overhead
Sales-Fixed
Corporate- Fixed
Net Income

$
25500
2500
28000

6000
1500
1500
1500
2000
12500

3000
3375
1875
3750
12000
3500

Small Print shop offer $8 per 100 b

0.08 per unit

shop offer $8 per 100 brouchers