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Assignment 2 Eco 550 Briefly describe the details of the fictitious business that you created for th

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Assignment 2 Eco 550
Operations Decisions
Assignment # 2
1. Briefly describe the details of the fictitious business that you created
for this assignment.
There will be 100 employees who work 20 days each month with a
salary of $70 each day. The employees will manufacture 6,000 units of
output each month which has a variable costs of $2,000 per day. The
fixed costs have not been revealed and we are advised they are "high
enough" which the total costs will exceed the corporation’s total revenue.
The price of the corporation’s output is $32 and the marginal cost of the
last unit is $30.
2. Access the current environmental scan factors. Determine the factors
that will have the greatest impact on plant operations and management's
decision to continue or discontinue operations.
With the information given the main elements of an environmental scan
are; the expected time the business anticipates to be in the marketplace
(short run vs. long run), the elasticity of demand for the item the
corporation manufactures, competition (many firms vs. few firms), and
fabrication expenses. Some other trivial elements of an environmental
scan reveal the learning curve of employees against experience,
turnover, and markets.
Time frame is one of the greatest factors with the provided information
regarding corporation ABC since the fixed costs were not provided but
advised it would be high. This is believed to be a main concern due to
the fact that in the short run not all contributions are variable and
variable costs are reliant on fabrication. Manufacturing exhausting the
variable inputs is the best manner alters profit losses or profit limits. If
the corporation intends to have long run plans, therefore, fixed costs
concern is not the leading problem at the moment due to all inputs being
variable which can be modified in accordance to executive's decisions.
The last topic of environmental scan which has the highest impact on
Corporation ABC is the cost of production. The cost of production is the

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