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  • Date: CEO: Gaurav Kenue Group No: Group Members:: Calculations

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    Gaurav Kenue
    31 просмотров1 страница
    The group's CEO is Gaurav Kenue and its members are Kartikay Sharma, Aditya Sharma, Yuvraj Thakur, and Tasneem Pardiwalla. Recalculating costs, the document shows that total variable costs decrease as production increases, causing average costs and marginal costs to also decrease. Producing 630 units results in an average cost of $5.27 per unit, so selling each unit for $5.50 would generate a profit of $0.23. The original calculation showing a loss was incorrect, so Adelaide should not be fired.

    Исходное описание:

    Microeconomics Differential Pricing

    Оригинальное название

    Microeconomic

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    The group's CEO is Gaurav Kenue and its members are Kartikay Sharma, Aditya Sharma, Yuvraj Thakur, and Tasneem Pardiwalla. Recalculating costs, the document shows that total variable costs decrease as production increases, causing average costs and marginal costs to also decrease. Producing 630 units results in an average cost of $5.27 per unit, so selling each unit for $5.50 would generate a profit of $0.23. The original calculation showing a loss was incorrect, so Adelaide should not be fired.

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    31 просмотров1 страница

    Date: CEO: Gaurav Kenue Group No: Group Members:: Calculations

    Загружено:

    Gaurav Kenue
    The group's CEO is Gaurav Kenue and its members are Kartikay Sharma, Aditya Sharma, Yuvraj Thakur, and Tasneem Pardiwalla. Recalculating costs, the document shows that total variable costs decrease as production increases, causing average costs and marginal costs to also decrease. Producing 630 units results in an average cost of $5.27 per unit, so selling each unit for $5.50 would generate a profit of $0.23. The original calculation showing a loss was incorrect, so Adelaide should not be fired.

    Авторское право:

    © All Rights Reserved
    Скачайте в формате DOCX, PDF, TXT или читайте онлайн в Scribd
    Отметить как неприемлемый контент
    из 1

    Date:

    Group
    No:

    23rd March 2015


    3

    CEO: Gaurav Kenue


    Group Members:
    Kartikay Sharma
    Aditya Sharma
    Yuvraj Thakur
    Tasneem Pardiwalla

    Considering table below and calculating all costs again we get the following table in
    which the total variable costs are decreasing as the number of units produced
    increases. So if we calculate the average cost of the product it also decreases as
    quantity produced increases, due to which marginal cost of production is less than
    marginal revenue, so we have the possibility of further increasing production.
    At 630, Average cost of production considering all expenses without commission was
    $5.27 .So even if we sell the product at $5.5 there will be a profit of around $0.23 per
    unit of the product. So the calculation done by lee method was incorrect, and in actual
    they did not incur a loss by selling at $5.50 per units. If they were selling only 530
    units the average cost would have increased to $5.72 which in turn had resulted in
    loss. Therefore Adelaide shouldnt be fired

    Calculations.xlsx

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