Operations Decision Students Name ECO 550 Managerial Economics & Globali Professor: NAME Date: 19-July-2012 Operations Decision This paper will describe the details of a fictitious business and will assess the current environmental scan factors while determining the factors that will have the greatest impact on plant operations and management’s decision to continue or discontinue operations. Thirdly, this paper will evaluate the financial performance of the company
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Existing Business Proposal ECO/561 June 21, 2012 Dr. Jill Trask Business Proposal It is very significant to comprise a business plan in the shifting world business to stay ahead. The changes in the economy will create or shatter the business. In this paper Adnan will discuss the existing goods or services business proposal of Thomas Money Services Inc. The reason to have a business plan for the organization is to restore or generate more profits for the business. Elasticity
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language translation option as well. The purpose is to create a business proposal to improve the existing goods and services for Will Bury’s new product. In this paper the subject to discuss is profit-maximizing and increasing revenue. Marginal cost, marginal revenue, credit markets, and the unemployment rate are briefly covered. Additional sections will discuss pricing and non-pricing strategy, barriers to entry, product differentiation, and minimizing cost. Business Proposal Profit-Maximizing
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Variable Cost | Total Cost | Marginal Cost | 0 | 0 | $76.00 | $0 | $76 | $0 | 1 | 3 | $76.00 | $64.00 | $140.00 | $21.33 | 2 | 8 | $76.00 | $128.00 | $204.00 | $12.80 | 3 | 15 | $76.00 | $192.00 | $268.00 | $9.14 | 4 | 20 | $76.00 | $256.00 | $332.00 | $12.80 | 5 | 22 | $76.00 | $320.00 | $396.00 | $32.00 | Marginal revenue is equal to product price if this firm is in a perfectly competitive market. Since this is a perfectly competitive market, assume marginal revenue and prices both are
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Q5-8. “My variable costs are $2 per unit. If I want to increase production from 100,000 units to 150,000 units, my total costs should go up by only $100,000.” Comment. Although the total variable costs would go up by $100,00 if the production were increase from 100,000 to 150,000 units, the amount of total costs is still uncertain. Total costs is the sum of the variable costs and fixed costs, so in this situation, the total costs can still go higher than $100,000. The fixed costs such as rent
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E303. Spring 2012 Problem Set #2 (Note: For the first question of this problem set (parts a to d) use EXCEL to generate numbers. Replace the below table with your answers ON THIS SHEET. Similarly, in the rest of the assignment you may use EXCEL, but if you do so, insert figures and tables from EXCEL onto this sheet. 1. Consider the total profit function ( = TR - TC = (22 –Q)Q – (10+2Q+Q2 ) a. Create a table that shows Total Revenue, Total Cost and Total Profit
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Calculating the fixed costs, variable costs and the break-even point for XYZ Corporation for years 2002, 2003, and 2004. Year 2002 Fixed Costs=Rent and Utilities + Telephone + Management + Other $150,000.00+24,000.00+351,000.00+117,903.00=$642,903.00 Variable Costs= Payroll and Benefits + Supplies $417,004.00 + 125,101.00=$542,105.00 Formula for the Break-even point PX=A + BX P= Total agency revenue divided by total number of customers $1,165,065/5,962=$195.42 income per customer X= break-even
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$40 | $26 | 3 | $60 | $40 | 4 | $80 | $56 | 6 | $120 | $94 | 7 | $140 | $116 | 8 | $160 | $140 | 9 | $180 | $166 | Choose one answer. | a. Marginal cost is $6. | | | b. Total revenue is greater than total variable cost. | | | c. Total revenue is greater than total cost. | | | d. Marginal revenue is less than marginal cost. | | | e. Both b and c are correct. | | Question 2 Marks: 1 Susan quit her teaching job, which paid her $36,000 per year, in order to start
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Economies of scale are reductions in average costs attributable to production volume increases. They typically are defined in relation to firms, which may seek to achieve economies of scale by becoming large or even dominant producers of a particular type of product or service. A distinction can be made between internal and external economies of scales. Internal economies of scale occur when a firm reduces costs by increasing production. External economies of scale occur when an entire industry benefits
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CHAPTER 12 operation management DISCUSSION QUESTIONS 1. THE ADVENT OF LOW-COST COMPUTING SHOULD NOT BE SEEN AS OBVIATING THE NEED FOR THE ABC INVENTORY CLASSIFICATION SCHEME. ALTHOUGH THE COST OF COMPUTING HAS DECREASED CONSIDERABLY, THE COST OF DATA ACQUISITION HAS NOT DECREASED IN A SIMILAR FASHION. BUSINESS ORGANIZATIONS STILL HAVE MANY ITEMS FOR WHICH THE COST OF DATA ACQUISITION FOR A “PERPETUAL” INVENTORY SYSTEM IS STILL CONSIDERABLY HIGHER THAN THE COST OF THE ITEM. 2. The standard
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