Case Problem 1 Textbook Publishing ASW Publishing, Inc

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Case Problem 1 Textbook Publishing

ASW Publishing, Inc., a small publisher of college textbooks, must make a decision regarding which books to publish next year. The books under consideration are listed in the following table, along with the projected three-year sales expected from each book:

Book Subject                       Type of Book Projected Sales (1000s)

Business calculus                       New                             20

Finite mathematics                  Revision                          30

General statistics                       New                             15

Mathematical statistics             New                              10

Business statistics                     Revision                      25

Finance                                      New                                 18

Financial accounting                New                               25

Managerial accounting         Revision                         50

English literature                      New                             20

German                                     New                            30

 

The books listed as revisions are texts that ASW already has under contract; these texts are being considered for publication as new editions. The books that are listed as new have been reviewed by the company, but contracts have not yet been signed. Three individuals in the company can be assigned to these projects, all of whom have varying amounts of time available; John has 60 days available, and Susan and Monica both have 40 days available. The days required by each person to complete each project are shown in the following table. For instance, if the business calculus book is published, it will require 30 days of John.