Business Case Studies & Business Publications

FinePrint Company (Abridged)

Lynch, Luann J.

Case

FinePrint Company (Abridged)

Lynch, Luann J.

C-2298 | Published September 20, 2009 | 3 pages Case

Collection: Darden School of Business

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John Johnson, owner of FinePrint Company, is presented with two opportunities to consider: (1) whether to accept a one-time special printing order, and (2) whether to outsource some of his printing to another printing company. In making his decisions, he must consider the relevance of certain costs, the behavior of those costs, and the extent to which he has capacity constraints.

This case is a short, simple introduction to the basics of costs and decision-making, exposing students to the following: (1) Cost behavior, including variable and fixed costs; (2) The concepts of contribution margin and breakeven; (3) The relevance of costs to decision-making; (4) Opportunity costs; and (5) The impact of capacity constraints on decision-making