Here are the questions you need to answer for this case:
Calculate the variable costs per thousand bottles for one-separation rounds, two-separation rounds, and two-separation ovals, assuming that all ovals are printed on the machine with the automatic feature for ovals.
Do one set of calculations for the Albany area (scrap included) and another for New York–New Jersey (freight included, but not scrap).
Only do one bottle size (the smallest) and assume the average order size is 10,000 bottles.
Prepare a suggested price list for the Albany area. Consider only one-separation rounds and two-separation rounds or ovals, for only the smallest size bottle
As a guide to completing this case you should consider the following questions:
How did Mr. Lipman’s goal of a 30 percent margin (at capacity) affect your price recommendations?
Which products should the company attempt to sell in New York–New Jersey? Explain.
HINTS and Additional Notes:
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