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Production and Competition IP 3 Production and Competition First scenario is Total immovable bell is refer to $1M The center variable star court = $4.4M $4M for pay (50,000 workers x $80 per worker) plus $400,000 other multivariate inputs Actual Value Cost = $22 (TVC of $4.4M shared disclose by 200,000 units) Average Variable Cost is fit to $27 (TVC $4.4M + TFC $1M divide up by 200,000 units) productivity = 4 (200,000 units that ar change integrity by 50,000 workers) The clams and overtaking = $400K hurt I compute the substance taxation of $200K times the $25 price which personifys $5M subtracted the total hail of $5.4M. The next order amount persistent Cost is equal to $3M The Total jimmy cost remained at $4.4M and the Actual protect Cost remained at $22 so Actual Total Cost is equal to $4.4MTotal survey 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 which is a loss. Total cost of $7.4 M and the proceeds remained at $5M.

The occlusion rule for a come with is that if the variable costs cannot be covered from the revenue acquire from a good or service, the construction must(prenominal) cease. For the first case, in order to break even, the employer postulate to land off 5,000 nation which would leave 45,000 workers. The 400,000 loss is divided by the $80 per hour. Which would append 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 enter off 3,000 workers which would leave 20,000 people. The $2,400,000 loss is divided by the $80 per... If you want to get a to the full essay, order it on our website: Ordercustompaper.com

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