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ESPRESSO BOOK MACHINE
Abdullah Binshaieg, Dennis Saneski, Becca Samelson
IT Department
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Technology
Automatic book printer, binder, trimmer Makes publisher-quality books
On board computer Google Books
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Espresso Book Machine
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Technology
Prints in 3 ½ minutes per book (depending on the size)
Average cost of printing a book around $5 per book Cost includes publisher fees, Google Books
fee, On Demand Books fee, and materials
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Business Impact
Allows us to: Lower our inventory(and Depreciation
Expense)
Reduce Cost of Goods Sold
Lower labor costs
Reduce property expenses
Increase our net income
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Income Statement 2008(In Millions of US Dollars)
Before EBM
After EBM*
Net Sales $3,280.0 $3,280.0
GOGS (excluding depreciation) $2,380.0 $2,142.0
Operating Expenses $839.6 $587.7
Other Expenses (including
depreciation)$209.1 $104.6
Earnings Before Interest and
Taxes- $148.7 $445.7
Estimated Savings from EBM $594.4*After EBM column is an estimate of potential savings