Essay About Printing House And Current Summary Of Costs Of The Company        4Table

Short-Run Managerial Decision Raises a ‘hamlet-Like’ Dilemma
[pic 2]SHORT-RUN MANAGERIAL DECISION RAISES A ‘HAMLET-LIKE’ DILEMMASpark Publishing and Printing House[pic 3][pic 4]Table of ContentsCompany Background        2Status Quo        3Financial Analysis        4Table 1: Current Summary of Costs of the Company        4Table 2: Fine Printing Press Option Summary (Choice 1)        4Table 3: Fine Printing Press Option Summary (Choice 2)        5Table 4: Computations and Values Basis        5Company BackgroundStatus QuoFinancial AnalysisTable 1: Current Summary of Costs of the CompanySNCost ParticularsPublishing DepartmentPrinting and Distribution Department1Salary and Wages340,000288,0002Material and Supplies170,000340,0003Depreciation115,000150,0004Allocated General Overheads85,000115,0005Warehouse Rent42,00048,0006Other Operating Expenses96,00079,000Total Expenses per department848,0001,020,000Total Expenses1,868,000Table 2: Fine Printing Press Option Summary (Choice 1)ParticularsBenefitsCostsContract Expense-75,000Pension Payable-96,000Managerial Salary72,00078,000Retrenchment120,000150,000Income on Sale of Materials88,000-Materials Penalty-9,000Loss on Sale of Equipment-75,000Income on Sale of Vehicle100,000-Rent Income60,000-Warehouse Lease Savings42,000-Other Operating Expenses64,000-Total546,000483,000Net Benefit / (Net Costs)63,000Note: This result is based on Sameer’s option of choosing to sell the firm’s distribution vehicle to FPP, and to use its irretrievable leased warehouse for Publishing Department instead of renting on its old space.