Bus 640 Week 3 Assignment
Production Amount Analysis and Estimation Activated Problems
Please complete the afterward two activated problems:
William is the buyer of a baby pizza boutique and is cerebration of accretion articles and blurred costs. William’s pizza boutique owns four ovens and the amount of the four ovens is $1,000. Anniversary artisan is paid $500 per week.
Qty of pizzas produced per week
Show all of your calculations and processes. Describe your acknowledgment for anniversary catechism in complete sentences, whenever it is necessary.
Which inputs are anchored and which are capricious in the assembly action of William’s pizza shop? Over what ranges do there arise to be increasing, constant, and/or abbreviating allotment to the cardinal of workers employed?
What cardinal of workers appears to be best able in agreement of pizza artefact per worker?
What cardinal of workers appears to abbreviate the bordering amount of pizza assembly bold that anniversary pizza artisan is paid $500 per week?
Why would bordering abundance abatement back you appoint added workers in the abbreviate run afterwards a assertive level?
How would accretion the business affect the economies of scale? Back would you accept connected allotment to calibration or diseconomies of scale? Describe your answer.
The Paradise Shoes Aggregation has estimated its account TVC action from abstracts calm over the accomplished several months, as TVC = 3450 + 20Q + 0.008Q2 area TVC represents the absolute capricious amount and Q represents pairs of shoes produced per week. And its appeal blueprint is Q = 4100 – 25P. The aggregation is currently bearing 1,000 pairs of shoes account and is because accretion its achievement to 1,200 pairs of shoes weekly. To do this, it will accept to charter addition shoe-making apparatus ($2,000 per anniversary anchored acquittal until the charter aeon ends).
Show all of your calculations and processes. Describe your acknowledgment for anniversary account beneath in complete sentences, whenever it is necessary.
Describe and acquire an announcement for the bordering amount (MC) curve.
Describe and appraisal the incremental costs of the added 200 pairs per anniversary (from 1,000 pairs to 1,200 pairs of shoes).
What are the profit-maximizing amount and achievement levels for Paradise Shoes? Describe and account the profit-maximizing amount and output.
Discuss whether or not Paradise Shoes should aggrandize its achievement added above 1,200 pairs per week. State all assumptions and abilities that underlie your recommendation.
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