![]() Exhibit 1 contains information related to FinePrint's monthly operating costs for the company's current activity level of 150,000 brochures per month. ![]() John felt that many of his costs were fixed, but that some costs varied with the number of brochures he printed and sold. He employed one sales representative and one printing press operator, although he frequently relied on temporary labor to help in the printing process as needed to accommodate any changes in printing volume. ![]() John Johnson owned and managed the company. Monthly production at its Charlottesville facility was running at around full capacity of 150,000 brochures per month. ![]() It primarily served other businesses in the central Virginia area, although it did have some clients in southwest Virginia and as far east as the Chesapeake Bay region of the state. COMPANY BACKGROUND Johnson's company, FinePrint Company, printed elaborate high-quality color brochures in its facility located in Charlottesville, Virginia. In addition, Ernest Bradley, the owner of a local one-room printing operation in Charlottesville, Virginia, called SmallPrint Shop, had stopped by to see if FinePrint Company could use some help printing color brochures over the next few months. First, Abbie Jenkins, a friend of Johnson's and the owner of a small company in nearby Keswick, Virginia, had called to see if Johnson's printing company, FinePrint Company, could accommodate a special printing order next month. FINEPRINT COMPANY John Johnson reflected on both offers he had received in the past couple of days. ![]()
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