Assignment Name: Assignment 3 Contact: Instructor via Blackboard Mail Due Date: See Critical Pat

Jun 21st, 2015
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A company produces hoodies. The cost per hoodie is: Material \$10 Thread \$1 Decals - design \$2 Packaging \$1 Shipping \$5 The artist who creates the designs on the hoodies is paid \$8,000 annually. The other annual costs are: Taxes and Insurance \$15,000 Utilities \$30,100 Rent \$131,000 Miscellaneous Overhead Expenses \$52,500 Management Salary \$200,000 Each worker costs \$25,000 per annum in salary and benefits. The following production is possible: No. Of Workers 0 1 2 3 4 5 6 7 No. Of Hoodies that can be made 0 6500 15,000 20,000 33,500 42,500 48,000 47,000   1. Using all this information complete the following table and answer the questions. It would be easier if you set this up in an Excel spreadsheet. When you are done, you must submit it as a Word document with your answers.You will use this table to answer questions 2 and 3. (4 marks) Your first step is to identify which are fixed costs and which are variable costs. If you will have to keep paying the cost whether

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Assignment Name:Assignment 3Contact:Instructor via Blackboard MailDue Date:See Critical Path DocumentLearning OutcomesThe learner will:Given a specific business situation, calculate the point of profit maximization in the short term. Further, show how the profit maximizing firm responds in the long run as the costs of one or more of the inputs changes. There is an example of what is expected in the Learning Activities for this section. Instructions1. Complete the exercises below, answering all questions. In this exercise you are trying to maximize profits (or minimize losses). Dont forget to answer the questions as well as create the table. 2. Submit the assignment in a WORD document using the Assignment Submission feature. Assignments not submitted as a Word document will not be accepted. Assignments submitted in Excel will be returned unmarked. Assignments that are emailed will not be accepted.A company produces hoodies. The cost per hoodie is:Material \$10Thread \$1Decals - design \$2Packaging \$1Shipping \$5The artist who creates the designs on the hoodies is paid \$8,000 annually. The other annual costs are:Taxes and Insurance\$15,000Utilities\$30,100Rent\$131,000Miscellaneous Overhead Expenses\$52,500Management Salary\$200,000Each worker costs \$25,000 per annum in salary and benefits. The following production is possible:No. Of Workers01234567No. Of Hoodies that can be made0650015,00020,00033,50042,500

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