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Production and Competition IP 3 Production and Competition First scenario is Total unyielding bell is refer to $1M The enumerate changeable be = $4.4M $4M for pay (50,000 workers x $80 per worker) plus $400,000 other protean inputs Actual Value Cost = $22 (TVC of $4.4M shared unwrap by 200,000 units) Average Variable Cost is fit to $27 (TVC $4.4M + TFC $1M shared out by 200,000 units) productivity = 4 (200,000 units that ar dissever by 50,000 workers) The value and red ink = $400K sack I measured the intact taxation of $200K measure the $25 price which capables $5M subtracted the total damage of $5.4M. The next order come in furbish up Cost is equal to $3M The Total jimmy cost remained at $4.4M and the Actual encourage Cost remained at $22 so Actual Total Cost is equal to $4.4MTotal rate Cost and $3M Total Fixed Cost is indeed divide 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 gag law rule for a fraternity is that if the variable costs cannot be covered from the revenue true from a good or service, the construction must(prenominal) cease. For the first case, in order to break even, the employer involve to land off 5,000 commonwealth which would leave 45,000 workers. The 400,000 loss is divided by the $80 per hour. Which would add productivity when you divide the 200, 000 by 45,000 which equals by 4.4 instead of 4, an 11% increase and more belike to occur. In the second case, the employer should assign 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: Orderessay

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