(Solution) - Jours Daim SA operates a printing press with a monthly capacity -(2025 Original AI-Free Solution)
Paper Details
Jours-Daim SA operates a printing press with a monthly capacity of 2000 machinehours. Jours-Daim has two main customers, Harpes-à-Gonds, SNC and Fourbe-Riz SA. Data on each customer for January follow:
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Required
1. Should Jours-Daim drop the Fourbe-Riz business? If Jours-Daim drops the Fourbe-Riz business, its total fixed costs will decrease by 20%.
2. Fourbe-Riz indicates that it wants Jours-Daim to do an additional ?80 000 worth of printing jobs during February. These jobs are identical to the existing business Jours-Daim did for Fourbe-Riz in January in terms of variable costs and machine-hours required. Jours- Daim anticipates that the business from Harpes-à-Gonds in February would be the same as that in January. Jours-Daim can choose to accept as much of the Harpes-à-Gonds and Fourbe-Riz business for February as it wants. Assume that total fixed costs for February will be the same as the fixed costs in January. What should Jours-Daim do? What will Jours-Daim's operating profit be in February?