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Production and emulation IP 3 Production and Competition First scenario is congeries Fixed bell is refer to $1M The chalk up Variable toll = $4.4M $4M for pay (50,000 workers x $80 per worker) summing up $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 split up by 200,000 units) Productivity = 4 (200,000 units that ar dissever by 50,000 workers) The profit and impairment = $400K loss I calculated the total taxation of $200K times the $25 price which equals $5M subtracted the total follow of $5.4M. The next order essence 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 treasure 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 $2.4M whi ch is a loss. Total cost of $7.4 M and the proceeds remained at $5M.

The shutdown convention for a company is that if the variable costs cannot be cover from the revenue received from a good or service, the verbalism must(prenominal) cease. For the first case, in order to break even, the employer needs to destroy 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 bountiful essay, order it on our website: OrderCustomPaper.com

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