A federation looking to be competitive within a given market mustiness judge the variables closely. In the Cost and Revenue Curves Simulation, Team A, could examine the economics involved in managerial decision making. This manakin consisted of three sections.
The first section presented three states--California, Texas, and Florida--as possible sites for blowup in production. All three states compared had the same capabilities for the levels of production presented along with the same obstacles in maximum production. Second, the simulation showed Team A how the choice of state for production, competitive pricing, and environmental factors intrude on the economic decisions managers make. Lastly, Team A examined how changes in the market lease can disturb the decisions made.
Team A was appointed as chief operating manager for elicit Fresh orange tree Juice Company and utilized the simulation to examine how company makes decisions based upon woo and revenue over a pointedness of time. Each member of Team A completed the simulation for one of the three choice states.
To most accurately and expeditiously complete the simulation, it is important to understand some of the key foothold used.
Two graphs in the simulation presented the cost and revenue for Farm Fresh Orange Juice along with quantity produced. The take graph showed the relationship of total cost and total revenue to the quantity produced. join cost is the sum of fixed cost and variable costs at each level of sidetrack (McConnell, Brue, & Flynn, p. 161, 2009). The formula used to determine the total cost is as follows:
Total Cost= Total Fixed be + Total Variable Costs
Fixed costs are expenses that do not vary fronting upon the quantity produced, whereas variable costs depend on the production siding. Knowing this information permits the Total dough to be determined by subtracting the Total Cost from the Total Revenue at any given quantity output point on the...If you want to get a amply essay, order it on our website: Ordercustompaper.com
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