Describe the details of the fictitious business

Assignment Help Business Economics
Reference no: EM13214506

Assume that you have been hired as a managing consultant by a company to offer some advice that will help it make a decision as to whether it should shut down completely or continue its operations. It currently uses 100 workers to produce 6,000 units of output per month(working 20 days/month). The daily wage per worker is $70, and the price of the firm's output is $32. The cost of other variable inputs is $2000 per day. You are told that the firm's fixed cost is high enough so that the firm's total costs exceed its total revenue. The marginal cost of the last unit is $30.

1. Briefly describe the details of the fictitious business that you created for this assignment.

2. Assess the current environmental scan factors that are relevant to the decision making process. Determine the factors that will have the greatest impact on plant operations and management's decision to continue or discontinue operations. Provide a rationale for your determination.

3. Evaluate the financial performance of the company using the information provided in the scenario. Consider all the key drivers of performance, such as company profit or loss for both the short term and long term and how each factor influences managerial decisions. Be sure to show the calculations that helped you reach your conclusions.

4. Recommend how the company can improve its profitability to deliver more value to its stakeholders. Then, develop a brief plan to implement the recommendations.

5. Assess the circumstances in which the company should discontinue operations and how management should react when confronted with these circumstances.

Reference no: EM13214506

Previous Q& A

  Explain what is the solubility of mns

What is the solubility of MnS, in grams per liter, in a buffer solution that is 0.115M HC2H3O2

  How many firms do you expect there to be in the industry

the most efficient production technology available for making vitamin pills has the cost structure given in the following table. Note that output is measured as the number of bottles of vitamins produced per day and that costs include a normal pro..

  Explain equation for the conversion of the fatty acid

What is the balanced equation for the conversion of the fatty acid H3C-(CH2)20-COOH to acetyl CoA and other products?

  What would be the estimated price of bond today

A zero coupon Treasury bond is scheduled to pay $1000 in 25 years. If the current Treasury yield rate on this maturity of bonds is 4.5% YTM (APR), what would be the estimated price of this bond today?

  Explain columetric flask and the colume made up

3.953g of egg shell was reacteed with 50ml of 0.1 mol/l hcl and shel contains ca2co3 after all the sheell reacted resultign solution was placed in a columetric flask and th colume made up to be 100ml.

  How many labor hours and machine hours should firm employ

Davy Metal Company produces brass fittings. Davy's engineers estimate the production function represented below as relevant for their long-run capital-labor decisions. Q = 500L^0.6K^0.8 where Q = annual output measured in pounds.

  At which output level avc reaches its minimum value

A firm estimates that its total cost function is accurately estimated by the equation TC = 6,000 + 19Q - 5Q^2 + 0.5 Q^3 a. How much is MC at an output of 10 units b. At which output level AVC reaches its minimum

  State the new volume if the pressure remains constant

degrees C are warmed to 100 degrees C. what is the new volume if the pressure remains constant?

  How much labor will be hired to minimize costs of producings

Your firm's the production function: Q = 4K^1/2L^1/2 Suppose that the price of labor is $5 and the price of capital is $20. Your firm desires to produce 200 units of output. How much labor will be hired to minimize the costs of producing 200 units..

  Explain what kind of hybridization for the central at atom

What bond angles do you expect for each of the following, and what kind of hybridization do you expect for the central at atom in each?

Reviews

Write a Review

 

Similar Q& A

  Which promotional mix would be most likely to move people

Everyone who has baked with the new flour loves it, but she is having trouble getting potential consumers to the desire stage of the AIDA concept.

  What factor stores have in common behind their decline

Illustrate what factor stores have in common behind their decline. Elucidate how would you conclude which were important also which were not.

  How government projects programs continue to give benefits

All astute comments thus far. Some government projects also programs continue to give benefits for many yrs.

  Illustrate what entity establishes a cost ceiling

Illustrate what entity establishes a cost ceiling and does it require government sanction for violators. Will it result in a surplus or a shortage.

  Calculate the yield to maturity on this bond

Divide the gain or loss by the number of years to maturity to calculate the average annual gain/loss. Calculate the yield to maturity on this bond.

  Explain how much should you invest in the risk-free security

If you want the portfolio to have an expected return equal to that of the market, explain how much should you invest in the risk-free security.

  How much money is required in the trust fund to provide

At 6% interest, how much money is required in the trust fund to provide for the laboratory and equipment and its perpetual operation and equipment replacement?

  What was the growth rate of nominal gdp

Illustrate what was the growth rate of nominal GDP between 1996 also 1997. Why do economists use real GDP per capita to measure the economic progress.

  Does the substitution effect cause her to buy more or less

Michelle spends all her money on food and clothing. When the price of clothing decreases, she buys more clothing. Does the substitution effect cause her to buy more or less clothing.

  What will the new equilibrium price and quantity be

If a hurricane strikes Florida, and destroys 20 thousand pounds of oranges, what will the new equilibrium price and quantity be?

  Explain impact of mcdonald new launch

Explain do you think McDonald's new launch will have a sustainable impact on its bottom line.

  Nominal interest rates fall during recession

Business firms become pessimistic about their future earning capacity as do banks. Nominal interest rates fall during recession.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd