Analyze current environmental scan factors find out factors

Assignment Help Microeconomics

Reference no: EM13394009

Assume you have been hired as a managing consultant by a company to offer some advice that will help it make a decision as to whether it should shut down completely or continue its operations. It currently uses 100 workers to produce 6,000 units of output per month (working 20 days / month). The daily wage (per worker) is $70, and the price of the firm's output is $32. The cost of other variable inputs is $2,000 per day. You are told that the firm's fixed cost is "high enough" so that the firm's total costs exceed its total revenue. The marginal cost of the last unit is $30.

This assignment allows you to determine the specific details about this fictitious company in order to conduct an environmental scan of this company.

Write a four (4) page paper in which you:

1. Briefly describe the details of the fictitious business that you created for this assignment.

2. Assess the current environmental scan factors. Determine the factors that will have the greatest impact on plant operations and management's decision to continue or discontinue operations.

3. Evaluate the financial performance of the company using the information provided in the scenario. Consider all the key drivers of performance, such as company profit or loss for both the short term and long term. Be sure to show the calculations that helped you reach your conclusions.

4. Recommend how the company can improve its profitability. Then, develop a brief plan to implement the recommendations.

5. Assess the circumstances in which the company should discontinue operations. Provide a rationale with your response.

6. Use at least four (4) high-quality academic resources in this assignment. Note: Wikipedia and other Websites do not qualify as academic resources.

Reference no: EM13394009

Questions Cloud

Managing knowledge flow is significant for a firm which : managing knowledge flow is important for a firm that wants to get the most from its partnership with another company.

While the two extreme characterizations of the : while the two extreme characterizations of the mne-stakeholder relationship exploitive and transformative tend to

Which of the following products probably would be : which of the following products probably would be manufactured using a job order costing system?a. paperb. baseball

What are the key benefits of a company investing and : what are the key benefits of a company investing and trading securities. explain the rationale.what are the potential

Analyze current environmental scan factors find out factors : assume you have been hired as a managing consultant by a company to offer some advice that will help it make a decision

Recognize 3 of the stages in kottleracutes eight-step model : 1 list and describe internal andor external pressures in the organization 2 identify 3 of the stages in kottleracutes

When companies accumulate costs they generally use either a : when companies accumulate costs they generally use either a job-order or a process costing system. the type of system

For 1 million dempsey inc purchased stock in a corporation : for 1 million dempsey inc. purchased stock in a corporation that held only one asset an fcc license and thus is unable

Why is a statement of functional expenses considered an : why is a statement of functional expenses considered an important financial statement for a voluntaryhealth and welfare

User Account

All Pages