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5th Millennium and Graphic Arts Business

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5th Millennium and Graphic Arts Business
Colorscope was a small company in the graphic arts business. During early 1900s, with the advent of desktop publishing the company faced severe price competition because of their main operations in print production.

The assignment tries to cover the underlying cost fault with the organization. The product pricing did not include overheads associated with the product on the basis of man hours spent on various operational activities during the product life cycle (Job preparation, Scanning, Assembly, Output, and Quality Control).

The table below revaluates the overhead costs based on hours spent on jobs processing.

Job No | Revenue | Material Cost | Gross Margin | Job Prep | Scanning | Assembly | Output | QC | Net Profit | | | | | | | | | | | 61001 | 9600 | 5400 | 4200 | 368.85 | 2950.82 | 3872.95 | 737.70 | 645.49 | -4375.81 | 61002 | 9600 | 3500 | 6100 | 276.64 | 2213.12 | 3504.1 | 737.70 | 737.7 | -1369.25 | 61003 | 23000 | 4500 | 18500 | 645.49 | 3688.53 | 6915.98 | 1475.41 | 737.7 | 5036.89 | 61101 | 12000 | 1800 | 10200 | 368.85 | 1475.41 | 2766.39 | 368.85 | 368.85 | 4851.65 | 61102 | 11000 | 1500 | 9500 | 368.85 | 1475.41 | 2581.97 | 368.85 | 368.85 | 4336.07 | 61201 | 11000 | 1500 | 9500 | 368.85 | 1475.41 | 2950.82 | 368.85 | 553.28 | 3782.79 | 61202 | 23000 | 3300 | 19700 | 645.49 | 2950.82 | 5348.36 | 737.70 | 461.07 | 9556.56 | 61203 | 22000 | 3400 | 18600 | 553.28 | 3135.25 | 5901.64 | 737.70 | 553.28 | 7718.86 | 61204 | 20000 | 3200 | 16800 | 553.28 | 2766.39 | 5348.36 | 737.70 | 737.7 | 6656.57 | 61301 | 50000 | 13000 | 37000 | 1383.20 | 11987.70 | 23053.28 | 2950.82 | 2766.39 | -5141.39 | 61401 | 7800 | 1800 | 6000 | 461.07 | 1290.98 | 2950.82 | 368.85 | 368.85 | 559.43 | 61402 | 8000 | 3100 | 4900 | 368.85 | 1752.05 | 2950.82 | 737.70 | 645.49 | -1554.91 | 61403 | 8000 | 3900 | 4100 | 368.85 | 1844.26 | 3135.25 | 368.85 | 276.64 | -1893.85 | 61404 | 9000 | 2100 | 6900 | 368.85 | 2028.69 |
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