Thomas Money Service Business Analysis Essay example

1304 Words Mar 28th, 2011 6 Pages
Thomas Money Service Incorporated Business Analysis
Leslie (Scott) McCrory
ECO/561 Economics
March 14, 2011
Facilitator David Francom
Thomas Money Service Incorporated Business Analysis
Executive Summary

Thomas Money Service Incorporated is a consumer finance company, and conducted business successfully for 71 years. The organizations primary financing services pertained to commercial real estate and business loans. In 1946, the company decided to incorporate a subsidiary business to manufacture forestry and construction equipment. The new company, Future Growth Incorporated, became the Thomas Money Service’s sole brand of merchandise. In 1951, the newfound company purchased a suitable manufacturing facility to produce its
…show more content…
Profit is maximized when marginal revenue = marginal cost, and marginal cost is rising. To see why, recall that marginal revenue is the additional revenue from one additional unit. Marginal cost is the additional cost from 1 additional unit. When MR > MC, revenue is increasing faster than costs and the firm should increase production. When MR < MC, revenue from the additional unit is less than additional cost, and the firm should decrease production. As such, A firm maximizes profits when MR = MC” (Basic Economics, 2011, para. 8).
Cost Reduction Methods Many cost reduction methods are available for product manufacturing and services companies. For Thomas Money services and its manufacturing facilities, products

Related Documents