Fixed cost

It isn’t known how much exactly the service costed Russell. During this operation, the company only collected about $90,141, or the cost of purchasing horses for the service. The adding up of all accounts that the Pony Express got had lost $200,000 by the time it closed operations. But as the Pony Express was never a part of the US Postal System, the mailing services faced the same…

Question 1: What is the value chain? It is beneficial for organizations to strategically analyze costs to determine whether or not its costs are competitive with other companies in the same market. This comparison is done through what is known as a value chain, which analyzes the cost of internal activities and how they compare with competitors to determine which are sources of cost advantage or disadvantage. A value chain serves the purpose of examining the operating activities that businesses…

insurance and it is automatically included in the rent payment. I will have fixed cost and variable cost for each month and that will be what makes up my budget plan. My month one budget was divided into those two categories my fixed cost will remain the same for the next 6 months. Those 4 fixed cost is monthly condo rent ($945.00),car insurance ($115.00),pocket change ($100.00), and ($50) phone bill. My variable cost are food ($100.00), cleaning supplies ($25.00), cat litter ($15.00), cable…

economies of scale can be applied in the motion picture industry is based on the theory of economies of scale. As already mentioned, this theory argues that when output increases, the average costs decline (Besanko, Dranove, Shanley, & Schaefer, 2013). Thus, filmmaking company’s budget could be taken as a fixed cost and company’s output could be measured by films produced, the number of viewers or box office receipts. For example, copies of a film can be seen by millions of people. This provides…

2.8. Production With One Variable Input (Labour) And Law Of Diminishing Marginal Returns This is the situation were capital is fixed and labour is variable, and only way to increase the output is by increasing the output. amt of labour(L) capital(K) total output(q) avg product(q/L) marginal product(dq/dL) 0 20000 0 0 0 1 20000 30 30 30 2 20000 50 25 20 3 20000 80 26.66666667 30 4 20000 100 25 20 5 20000 115 23 15 6 20000 120 20 5 7 20000 112 16 -8 8 20000 100 12.5 -12 9 20000 90…

In ling run the price will be equal to the marginal cost. In perfectly competition the market structure clearly helps buyers. In monopoly holds substantial market power, so firms set prices using profit-maximizing rule. Without having to worry about competition driving the price down to marginal cost. And so both have market share, price control and barriers to entry. In monopoly there is only one firm that the price and supply…

customers all over the world. Not only is the high head count necesseary, but because of the large growth in business, the need to hire in-house employees has increased. AllTell is not able to ramp up its Customer Service headcount resources because of cost, and the lack of experienced resources and because of a complex hiring process. Overseas vendors offer a large, trained English-speaking population as well as competitively low labor…

Economies of Scale of a Manufacturing Plant Economies of scale occur in a manufacturing plant when it costs less per unit to produce or operate higher levels of output produced. This holds true when the production or operating cost does not increase linearly without increase in the output levels and all the fixed costs can be spread over a large number of output units produced. Also true, when operating efficiency increases as training and workers experience improves as well any existing…

level, it should be properly allocate the cost of each products. Activity Based Costing may help to measure the ‘real’ cost of product and the further price making which is more nearly to the reasonable price. Second, there are wider ranges of products. Choi Fung Hong was developing and produces a lot of types of product and those products may classify to different product lines such as H2O Hydrating product. It may helpful on the comparing the real cost of different product line, or each…

YEAR 10 PASS ASSIGNMENT How has technology impacted on the Olympic Games? Consider: 1. How has technology contributed to the performance levels at the Olympics (5 Marks) 2. The Impact of technology for participants, officials, coaches and spectators (5 Marks) 3. What are the major ethical implications of the use of technology at the Olympics? (5 Marks) 4. In your opinion how will future advancements in technology effect i) Future Olympics ii)…