Cost and Revenue Curve

Cost and Revenue Curves Simulation A federation tone to be competitive within a given food marketplace mustiness judge the variables closely. In the Cost and Revenue Curves Simulation, group A, could examine the economics involved in managerial finality making. This manakin consisted of three sections. The first section presented three states--California, Texas, and Florida--as come-at-able sites for blowup in ware. All three states compared had the same capabilities for the levels of production presented on with the same obstacles in maximum production. Second, the example showed aggroup A how the choice of state for production, competitive pricing, and environmental factors prod on the economic decisions managers make. Lastly, Team A examined how changes in the market lease can disturb the decisions made. Team A was plant as chief operating manager for elicit sweet-scented orange tree Juice Compevery and utilized the simulation to examine how co mpany makes decisions based upon woo and revenue everywhere a pointedness of time. Each member of Team A completed the simulation for one of the three choice states. To most(prenominal) accurately and expeditiously complete the simulation, it is important to understand well-nigh of the key foothold used.

Two graphs in the simulation presented the embody and revenue for Farm Fresh Orange Juice along with step produced. The take graph showed the relationship of total constitute and total revenue to the quantity produced. join cost is the marrow of fixed cost and variable costs at from each one le vel of sidetrack (McConnell, Brue, & Fl! ynn, p. 161, 2009). The formula used to model the total cost is as follows: heart Cost= Total frozen be + Total Variable Costs Fixed costs are expenses that do not vary fronting upon the quantity produced, whereas variable costs depend on the production siding. subtile this information permits the Total dough to be determined by subtracting the Total Cost from the Total Revenue at any given quantity output point on the...If you involve to get a amply essay, order it on our website: OrderCustomPaper.com

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