Background Case :

The main line from the colorscopeinc background are the corporate was found in march 1976, the first target customers is local customers (small agencies), and after that colorscope growth significantly that thing can be proved in 1988 sales colorscope over than USD 5 Milion and they served Big Customer, since growth they invest capital expenditure in order to improve services. In 1990 when the overall technology growth rapidly and there are more competitor than before, this situation make the condition under pressure, the first impact from this condition is price war,so the market pressure forced him to reduce his own price. After all finally in 1994 ,colorscope loss signifant& long term client ( where the client …show more content…

However, when a job is rescanned, assembly, output, and quality control all have to be redone.

Colorscope can gain additional revenue by leased the 6,500 sq. ft. idle floor space. 2. Colorscope Pricing strategy
If we talk about pricing strategy we must analyze about cost of production / cost per unit from the product, now price per page from colorscope around $ 600,

The result from the price analysis is colorscope sales price is below from cost per unit it cause there are inefficiency from cost of rent , there are idle room ( about $ 13,000) and it’s affected total cost about $ 24 per pages

So the conclusion about pricing strategy : * Colorscope must increase their sales prices over than cost per unit ( sales price > Total Cost) * Colorscope must make a policy about their rent. They must rent smaller office then rent expense will be reduced and effective. * Considering the size of the operations and cost of rework, it needed to control costs while maintaining quality and to manage customer profitability * Colorscope initiated quality improvement techniques, an incremental change to limit error

3. accounting and control should this company install

* Employees considered as important assets that will keep the business running well. Nevertheless, from the description of workflow organization at Colorscope we find that workflow and production procedures were standardized but not documented. Colorscope relied instead on the institutional