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.

Comprehend the role and impact of the Model Business Corporation Act (MBCA).

Analyze the implications of corporate actions on shareholders and creditors.

Recognize the distinctions and responsibilities involved in operating a corporation across state lines, including the necessity for qualification in foreign states.

Understand the due process requirements for bringing a foreign corporation into a state's court.

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Definitions:

One-Way Flow

A system or process in which resources or materials move in a single direction without recirculation or return to the starting point.

Limiting Factor

An environmental condition that restricts the growth, abundance, or distribution of an organism or a population within an ecosystem.

Terrestrial Ecosystems

are ecosystems found on land, characterized by diverse biotic communities interacting with the abiotic environment.

Precipitation

Any form of water, liquid or solid, that falls from the atmosphere and reaches the ground.