Evaluate the financial performance of the company

Assignment Help Microeconomics

Reference no: EM13174016

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.

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 and how each factor influences managerial decisions. Be sure to show the calculations that helped you reach your conclusions.

Reference no: EM13174016

Questions Cloud

What would the final temperature be assuming no heat losses : If 60.0g of Cu metal at 85C were added to 60.0g ethanol at 10C in a calorimeter of heat capacity 30.0 J/K what would the final temperature be assuming no heat losses? cp for Cu= 0.380 J/K/g and Cp for ethanol = 60.0 J/K/mol

What is the investing cash flow : What are the differences in the cash flow concepts and procedures between the direct and indirect methods and what is the operational cash flow, what is the investing cash flow?

State what was the final concentration of her standardized : Sam was standardizing her 4mL iron solution (50 ppm concentration) , but did not exactly add 4.0 mL. Instead he added 4.50mL.

Determine the freezing temperature for naphthalene solution : The equation for lowering the freezing point of a solvent is given in your manual. Given that the freezing point for the pure solvent is 79.5 , the molality is 0.15 , and the freezing point depression constant is 6.9 , determine the freezing tempe..

Evaluate the financial performance of the company : 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.

How many square meters will the oil slick cover : a fishing boat accidentally spills 3.0 barrels of diesel oil into the ocean. each barrel contains 42 gallons. if the oil film on the ocean is 2.5 x 10^2nm thick , how many square meters will the oil slick cover?

State body-centered cubic : For the same atoms at the lattice points, which lattice exhibits the lowest density? (please explain your reasoning) (A) body-centered cubic (B) face-centered cubic

Academic achievement and heavy alcohol consumption : In a cohort study designed to explore the relationship between academic achievement and heavy alcohol consumption among college students, every attempt was made to follow 1,000 students during their collegiate careers.

How many grams of this gasoline would fill a tank : A particular brand of gasoline has a density of 0.737 at 25C . How many grams of this gasoline would fill a 13.3 tank?

User Account

All Pages