Please answer following questions! You need to read and analyze the given information carefully and consider multiple ideas before you put forth your recommendation. Please include or reference calculations within your write-up. It is acceptable to include an excel file of calculations to go along with your answers.
Fineprint Case Questions (Consider each question separately):
Questions 1-3 relate to the special order decision.
- Assume that monthly printing capacity is 150,000 brochures. Should Johnson accept the special order?
- Assume that monthly printing capacity is 200,000 brochures, current monthly production is 150,000 brochures, and operating costs at the 150,000 level are as presented in case Exhibit 1. Also assume that this order would not affect any of FinePrint’s current business with its regular customers. Should Johnson accept the special order?
- Assume that monthly printing capacity is 200,000 brochures, current monthly production is 150,000 brochures, and operating costs at the 150,000 level are as presented in case Exhibit 1. At what price would Fineprint be indifferent (i.e. breakeven) about accepting the order?
Question 4 relates to the outsourcing opportunity.
- Assume that monthly printing capacity is 150,000 brochures. Should Fineprint outsource 30,000 brochures to SmallPrint?
Question 5 considers both the special order and outsourcing opportunity.
- Would it be profitable for Fineprint to print the special order for Jenkins, while outsourcing 25,000 brochures to SmallPrint?
Each case will be graded as follows:
Quality of Recommendation – 25% – A high quality recommendation is convincing. View yourself as a consultant that is making a recommendation to a client (assume Dr. Edmonds is the client). You are trying to convince me of your recommendation. There are many ways to do this. I will leave it up to you to come up with the best way. Remember your client may have their on ideas on the best approach. An explanation of why other possible alternatives are not as ideal as your recommendation can help with this.
Application of Course Material – 50% – You earn these points by correctly applying material learned in the lecture videos in formulating your recommendation.
Presentation – 25% – Remember you are presenting this to a busy client. If your recommendation is hard to follow or full of grammatical errors, I will be led to believe that your group is incompetent and lose interest quickly. Remember quality over quantity. Your client is busy and does not have a lot of patience for redundancy or irrelevant information.