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Production and contest IP 3 Production and Competition First scenario is substance Fixed bell is refer to $1M The heart Variable bell = $4.4M $4M for pay (50,000 workers x $80 per worker) cocksure $400,000 other variable inputs Actual Value Cost = $22 (TVC of $4.4M shared out by 200,000 units) Average Variable Cost is fit to $27 (TVC $4.4M + TFC $1M divide by 200,000 units) Productivity = 4 (200,000 units that ar change integrity by 50,000 workers) The profit and injustice = $400K loss I calculated the total taxation of $200K times the $25 price which equals $5M subtracted the total approach of $5.4M. The next order descend Fixed Cost is equal to $3M The Total jimmy cost remained at $4.4M and the Actual Value Cost remained at $22 so Actual Total Cost is equal to $4.4MTotal economic value Cost and $3M Total Fixed Cost is indeed divided by 200,000 units = $37 The worker competence remained at 4 so the profit and loss is equal to $2.4 M which is a loss. Total cost of $7.4 M and the proceeds remained at $5M.

The shutdown figure for a company is that if the variable costs cannot be cover from the revenue received from a good or service, the edifice must(prenominal) cease. For the first case, in order to break even, the employer needs to province off 5,000 people which would leave 45,000 workers. The 400,000 loss is divided by the $80 per hour. Which would increase productivity when you divide the 200, 000 by 45,000 which equals by 4.4 instead of 4, an 11% increase and more likely to occur. In the second case, the employer should lay off 3,000 workers which would leave 20,000 people. Th! e $2,400,000 loss is divided by the $80 per... If you want to get a to the amply essay, order it on our website: OrderCustomPaper.com

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