Operations Decision Essay

This file of ECO 550 Assignment 2 Operations Decision consists of: 1. Briefly describe the details of the fictitious business that you created for this assignment. 2. Assess the current environmental scan factor. Determine the factors that will have the greatest impact on plant operations and management’s decision to continue or discontinue operations. 3. Evaluate the financial performance of the company using the information provided in the scenario. Consider all the drivers of performance, such as company profit or loss for both the short term and long term. Be sure to show the calculations that helped you reach your conclusions. 4. Recommend how the company can improve its profitability. Then develop a brief plan to implement the recommendations. 5. Assess the circumstances in which the company should discontinue operations. Provide a rationale with your response. Economics – General Economics Assignment 2 â€Å"Operations Decision† Assume you have been hired as a managing consultant by a company to offer some advice that will help it make a decision as to whether it should shut down completely or continue its operations. It currently uses 100 workers to produce 6,000 units of output per month (working 20 days / month). The daily wage (per worker) is $70, and the price of the firm’s output is $32. The cost of other variable inputs is $2,000 per day. You are told that the firm’s fixed cost is â€Å"high enough† so that the firm’s total costs exceed its total revenue. The marginal cost of the last unit is $30. (Ch 7 8 to solve)  This assignment allows you to determine the specific details about this fictitious company in order to conduct an environmental scan of this company.   Write a three to four (4-5) page paper in which you: Briefly describe the details of the fictitious business that you created for this assig†¦ Follow the link to get tutorial – https://bitly.com/12AXeqz When your classes begin, you have to get acquainted with your instructors. Make sure that you are aware of their office locations, hours of availability and how else to contact them. You must develop good relationships with your professors so that you will feel comfortable talking with them if you need help or an exception on a due date. Economics – General Economics Assignment 2 â€Å"Operations Decision† Assume you have been hired as a managing consultant by a company to offer some advice that will help it make a decision as to whether it should shut down completely or continue its operations. It currently uses 100 workers to produce 6,000 units of output per month (working 20 days / month). The daily wage (per worker) is $70, and the price of the firm’s output is $32. The cost of other variable inputs is $2,000 per day. You are told that the firm’s fixed cost is â€Å"high enough† so that the firm’s total costs exceed its total revenue. The marginal cost of the last unit is $30. (Ch 7 8 to solve)  This assignment allows you to determine the specific details about this fictitious company in order to conduct an environmental scan of this company.   Write a three to four (4-5) page paper in which you: Briefly describe the details of the fictitious business that you created for this assignment. Assess the current environmental scan factors that are relevant to the decision making process. Determine the factors that will have the greatest impact on plant operations and management’s decision to continue or discontinue operations. Provide a rationale for your  determination. Evaluate the financial performance of the company using the information provided in the scenario. Consider all the key drivers of performance, such as company profit or loss for both the short term and long term and how each factor influences managerial decisions. Be sure to show the calculations that helped you reach your conclusions. Recommend how the company can improve its profitability to deliver more value to its stakeholders. Then, develop a brief plan to implement the recommendations. Assess the circumstances in which the company should discontinue operations and how management should react when c onfronted with these circumstances. Provide a rationale with your response.