Qat a recent board meeting ceo and president got into a

Assignment Help Business Economics
Reference no: EM13354628

Q. At a recent board meeting CEO and president got into a heated argument about whether to shut down the firm's plant in Miami. The Miami plant currently loses $60,000 monthly. The president of the firm argued that the Miami plant should continue to operate, at least until a buyer is found for the production facility. The president disagreement was based on the reality that the Miami plant's fixed costs are $68,000 per month. The CEO exploded over this point, castigating the president for considering fixed costs in making the shutdown decision. As per CEO, "Everyone knows fixed cost don't matter!"

a) Explain the Miami plant which is closed or continue to operate at a loss in short run?

b) Explain how would you explain to the incorrect party that he or she is wrong?

Reference no: EM13354628

Questions Cloud

Q1 how could you use cost volume profit analysis in a : q1. how could you use cost volume profit analysis in a products of choice. explain its benefits and limitationsq2.
Qauto company comprises small plant that produces : q.auto company comprises small plant that produces speedometers exclusively. its yearly fixed expenses are 30000 and
Q1 what is true about using the least squares method of : q1. what is true about using the least squares method of plotting an estimated regression line on a scatter diagram?q2.
Qhere is the question i need help on suppose that in new : q.here is the question i need help on suppose that in new crankshaft pennsylvania the quality distribution of the 4 000
Qat a recent board meeting ceo and president got into a : q.at a recent board meeting ceo and president got into a heated argument about whether to shut down the firms plant in
Q1 how does your analysis of vmp change if employer is a : q1. how does your analysis of vmp change if employer is a monopolist producer of its output but price-taker in the
Attempt the following1 run the lab0301sql script in the : attempt the following1. run the lab0301.sql script in the attached file to create the salhistory table. 2. display the
Q 1 clients to live theaters inc can be partitioned into 2 : q. 1. clients to live theaters inc. can be partitioned into 2 groups seniors and everyone else. the converse demand
Q1 referring to the output and substitution effects explain : q1. referring to the output and substitution effects explain why an increase in the wage rate for autoworkers will

Reviews

Write a Review

Business Economics Questions & Answers

  Illustrate what is the underlying factor which seems to help

Illustrate what is the underlying factor which seems to help clarify whether or not the economy is self-adjusting.

  Orecasters predictions inflation are notoriously inaccurate

Forecasters predictions of inflation are notoriously inaccurate, so their expectations of inflation cannot be rational.

  Describe return to an investment in a college education

Describe return to an investment in a college education. How would you go about measuring it. How would you decide it is good enough to warrant investment.

  Effects of monetary policies on the economys production

Explain the effects of monetary policies on the economy's production also employment

  Draw their budget set in housing-other goods space

Draw their budget set (the combination of housing and other goods that they can afford) in housing-other goods space.

  How do you think this has helped your community

In the last year, what is an example of something you have done that can be considered a socially responsible effort?  How do you think this has helped your community?

  Q1 an electrical utility is experiencing a sharp power

q1. an electrical utility is experiencing a sharp power demand which continues to grow at a high rate in a certain

  Identify components of domestic demand policies affect

What government policies are available to reduce domestic demand in the medium run. Identify which components of domestic demand each of these policies affect.

  What happened to real output

what happened to real output? by how much would the price index have had to rise for real income to remain constant?

  Payoff matrix for this game

Write out the payoff matrix for this game, and then find its Nash equilibrium.

  Why does inflation affect increase in social security

A newspaper article once reported that U.S. economy was experiencing a low rate of inflation. Why does inflation affect increase in Social Security and or profits.

  Elucidate how each of the following would affect the demand

Elucidate how each of the following would affect the demand schedule you derived.

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