Is the firm making a profit or a loss

Assignment Help Business Management
Reference no: EM13675622

A firm currently uses 50,000 workers to produce 120,000 units of output per day. The daily wage per worker is $100, and the price of the firm's output is $48. The cost of other variable inputs is $400,000 per day. (Note: Assume that output is constant at the level of 120,000 units per day.)

Assume that total fixed cost equals $900,000. Calculate the values for the following four formulas:

Total Variable Cost = (Number of Workers x Worker's Daily Wage) + Other Variable Costs
Total Costs = Total Variable Costs + Total Fixed Costs
Total Revenue = Price * Quantity
Average Variable Cost = Total Variable Cost / Units of Output per Day
Average Total Cost = (Total Variable Cost + Total Fixed Cost) / Units of Output per Day

Complete the following:

Calculate the firm's profit or loss. Is the firm making a profit or a loss?
Explain the Short Run Shut Down Rule. Should this firm shut down? Please explain.

Provide a report to the management of the firm that discusses what should be done.

Be sure to show your work to support the decision that you outline in your report.

Reference no: EM13675622

Questions Cloud

Identify at least two potential areas for employee : Identify at least two potential areas for employee theft on a large scale.
Evaluate how much is the rope stretched : An 80.6 kilogram climber is scaling the vertical wall of a mountain. Evaluate how much is the rope stretched when it breaks his fall and momentarily brings him to rest
Allis enters into a contract to buy a restored model t car : Allis enters into a contract to buy a restored Model T car. At the time the contract is entered into, the Model T has not yet been restored. Prior to completion of the restoration, a fire destroys the car. Explain what the consequences of the d..
Determine the elastic potential energy of the system : A 3.2 kilogram block is hanging stationary from the end of a vertical spring that is attached to the ceiling. Determine the elastic potential energy of the system
Is the firm making a profit or a loss : Calculate the firm's profit or loss. Is the firm making a profit or a loss?
Determine what average speed must you maintain : On a drive from your home to town, you wish to average 33.6 miles per hour. Determine what average speed must you maintain in the remaining distance in order to have an overall average speed of 33.6 mph
Increase the value of the call option on that asset explain : 1. True, False, or Uncertain. Other things being equal, an increase in the volatility of the underlying asset will increase the value of the call option on that asset. Explain.
Determine how far away is the reflecting object : A sound wave, traveling at 357 meter per second, is emitted by the foghorn of a tugboat. An echo is heard 1.73 second later. Determine how far away is the reflecting object
Globalization of trade and finance : Globalization of Trade and Finance

Reviews

Write a Review

Business Management Questions & Answers

  Performance reward system

Aside from monetary, what rewards could you put in place and what output and outcome measures could you use?

  Analyzing skill sets

A recent  Opinion poll  conducted through an outside research company for my employer revealed that workers view the following skill sets as being most desirable.

  Utilizing control chartscite an example of your personal

utilizing control chartscite an example of your personal experience with control charts. use the classic questions of

  Current global environment and effect on business

what are your thoughts about the global environment and what effect do you believe it has on the current and future US economy and business?

  Can co-workers reject to cross the picket line

If therefore do the workers have the right to be paid while they are striking? Can non-workers participate in the picketing? Can co-workers reject to cross the picket line? Explain.

  Bullying and employee grievance1 what is meant by the term

bullying and employee grievance1. what is meant by the term employee grievance?2. why is it important for employers to

  Deliberate how leaders identify and formulate effective

Deliberate how leaders identify and formulate effective change to address stakeholder expectations. Examine how organizations need to improve with respect to employee and customer responsiveness to meet objectives

  Serotonin is generating with the assistance of the pyridoxal

Subsequent oxidation at the 5 position of the indole ring by tryptophan hydroxyls, serotonin is generating with the assistance of the pyridoxal-phosphate cofactor. Provide a reasonable mechanism for the subsequent transformation.

  Research for a dissertation project

Finding a Dissertation Topic - How would you research for a dissertation project in this manner? Give us examples of your process?

  Organizational behavior - communications technology

Technology application examples can range from situations as varied as using the telephone or walkie-talkie to talk to someone vs. talking in person to tweeting to advertise product enhancements

  Can apparant agency be created by silence

Illustrate what steps can an industry take to protect itself against the creation of apparent agencies? Can apparant agency be created by silence?

  Policy analysis stakeholder alternativeshow does a policy

policy analysis stakeholder alternativeshow does a policy analyst differentiate between ideal and practical

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd