Andrew Cha founded Colorscope-a special –effects photography laboratory on March 1,1978.

 Sales

steadily increased to $5 million dollars at 1988.  Major Clients are Saatchi & Saatchi , Grey Advertising ,

J Walter Thompson , The Walt Disney etc.  Decided against the acquisition by Donnelley.  Decrease in

market price 1100 900 750 650 600 400 425 450 475 500 0 200 400 600 800 1000 1200 1991 1992 1993

1994 1995 Price/page of Work ($) Colorscope Service Bureau Introduction  Stage 1 Overhead Cost

assigned to activity Cost Pools  Stage 2 Overhead Costs are assigned to products ……………….. ………………

Job Preparation Scanning Assembly Output Quality Control 61001 61402 62001 Challenges & Problem 

Technical savvy printing companies with bundled pricing as intense competition.  Market price reduced

to $500-$600/page from $1200/page. Cost pressure was building up.  Operational process to be

developed by Colorscope to improve productivity and reduce cost.  Pricing strategy to be adopted by

Colorscope.  Cost & Accounting control system to be installed by Colorscope.