A Product Is Currently Made in a Process-Focused Shop, Where

question 49

Essay

A product is currently made in a process-focused shop, where fixed costs are $8,000 per year and variable cost is $40 per unit. The firm currently sells 200 units of the product at $200 per unit. A manager is considering a repetitive focus to lower costs (and lower prices, thus raising demand). The costs of this proposed shop are fixed costs = $24,000 per year and variable costs = $10 per unit. If a price of $80 will allow 400 units to be sold, what profit (or loss) can this proposed new process expect? Do you anticipate that the manager will want to change the process? Explain.

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Definitions:

Better Foods

Foods that are considered healthier or of higher nutritional value, emphasizing qualities like whole grains, lean proteins, and low processed ingredients.

Congestive Heart Failure

A condition where the heart's function as a pump is inadequate to meet the body's needs, leading to symptoms like shortness of breath and swelling.

Health Organization

An entity such as an agency or institution that works to promote, maintain, or restore health through the prevention and treatment of disease or illness.

Early Diagnosis

The process of identifying a disease or condition at an early stage, increasing the chances for successful treatment.