FinePrint Company Essay Example

sticking with FinePrint Company's current capacity of producing 150,000 brochures per month, this choice would generate a total operating income of $3,000. Option 2- John Johnson will agree to and undertake Abbie's print job without outsourcing it to SmallPrint Shop.

At their current production rate of 150,000 brochures per month, FinePrint would have to decline orders for 25,000 brochures in order to accommodate Abbie's request. This choice would result in a total operating income of $1,500. Another option is to accept Abbie's print job and delegate it to SmallPrint Shop while outsourcing 25,000 brochures. This decision would allow FinePrint to continue handling their current workload while earning a total operating income of $3,500. Alternatively, they can decline Abbie's print job and outsource it to SmallPrint Shop.

By selecting this choice, FinePrint Company can avoid reducing their monthly capacity from 150,000 brochures to 120,000 brochures in order to complete Abbie’s print job. However, they can outsource the production of 30,000 brochures to SmallPrint Shop. This option results in a total operating income of $2,400. Based on the alternatives provided and the calculations in Appendix 1, it is recommended that FinePrint Company accept Abbie Jenkins’ print job. However, the task should be outsourced to SmallPrint Shop (Option 3). By doing so, FinePrint Company would achieve the highest operating income ($3,500).

This report analyzes the FinePrint Company and its options, including accepting a discounted order and outsourcing printing. By doing so, the company can meet current customer needs, satisfy Abbie's order, and fulfill SmallPrint Shop's requirements. All parties involved benefit from this option. Ultimately, the analysis concludes that the FinePrint Company will maximize its income by accepting Abbie's order and outsourcing

to SmallPrint Shop.