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Production and opposition IP 3 Production and Competition First scenario is make out Fixed bell is refer to $1M The descend Variable damage = $4.4M $4M for pay (50,000 workers x $80 per worker) confirming $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 dual-lane by 200,000 units) Productivity = 4 (200,000 units that ar split by 50,000 workers) The profit and prejudice = $400K loss I calculated the total taxation of $200K times the $25 price which equals $5M subtracted the total toll of $5.4M. The next order entire 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 appreciate 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 i s a loss. Total cost of $7.4 M and the proceeds remained at $5M.

The shutdown obtain for a company is that if the variable costs cannot be cover from the revenue received from a good or service, the formula must(prenominal) cease. For the first case, in order to break even, the employer needs to land 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 whic h would leave 20,000 people. The $2,400,000 ! loss is divided by the $80 per... If you want to get a to the serious essay, order it on our website: OrderCustomPaper.com

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