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Will Bury Recommendation
For this week's paper we were to chose a company from our website and, make recommendations to the company on how to increase revenue, achieve ideal production level determine how fixed and variable cost should be adjusted, and identify methods to reduce cost. I have chosen the Will Bury Company. I will begin with an introduction of the company, followed by price changes due to substitute product. Then I will discuss price elasticity of demand followed by price changes due to fees and then end with my conclusion.
Introduction to the company:
The Will Bury Company is currently in the process of providing ways to digitize books. At this time the production process is only in the beginning stages and is taking up to one hour to digitize 500 pages with Will Bury doing all the work. Will is now considering hiring someone to assist in the process to help speed up the process.
With this decision Will must now consider how much labor cost will be associated with the new hire. If he hires within the United States he will incur at least a minimum wage of $7.25 per hour. If Will decided to outsource to the labor force overseas he would incur a cost of roughly $2.00 an hour.
Price Changes Due to Substitute Products:
At times substitute products may have the same qualities, and could possibly carry a lower cost. With that being said it is necessary for Will Bury to research his product to see if there are any substitutes available in the market. With Will currently selling his digitized books for $20 to $25 if there was a substitute that is selling for less Will Bury would have to options to combat the issue.