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

question 57

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 cost = $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.

---

Definitions:

Unlicensed

Operating or functioning without the necessary permissions, approvals, or legal authorization.

Software

Programs and operating information used by a computer to perform specific tasks.

Government Regulations

Rules established by authorities that govern how businesses can operate, aimed at ensuring fairness, safety, and compliance with the law.

Law Enforcement

A government agency responsible for the prevention, detection, and investigation of crime, and the apprehension of criminals.