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Big Oil Refinery Is Losing Money Every Month

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Essay

Big Oil Refinery is losing money every month. They cannot shut down the refinery. What quantity of product should they make in an effort to break even? Their primary product sale price is $1.50 per gallon. The production fixed cost is $36,000/day. The variable cost per gallon is $1.20.


Definitions:

Distributed Leadership

An approach to leadership that involves sharing responsibility among multiple members of an organization rather than centralizing power in a single leader.

Wheel Communication Structure

is a system of information exchange characterized by a central figure through which all communications pass, resembling the spokes of a wheel.

Centralized Communication Network

A communication structure where all decision-making and messaging are concentrated at a central point within the organization.

Freewheeling

Engaging in an activity without restrictions or a fixed plan, allowing for creativity and spontaneity.

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