FinePrint Company (A)

Abstract

John Johnson, the owner of the FinePrint Company, is presented with several opportunities to consider: (1) whether to accept a one-time special printing order (the A case), (2) whether to outsource some of his printing to another printing company (the B case, UVA-C-2194), and (3) whether to both accept the one-time special order and outsource it to another printing company (the C case, UVA-C-2195). In making his decision, he must consider the relevance of certain costs, the behavior of those costs, and the extent to which he has capacity constraints.

Keywords: decision making, capacity analysis, cost behavior, relevant costs

JEL Classification: M40, M46