Business decisions analysis assignment Essay

Business decisions analysis assignment

Please write a short essay explaining the methdologies explaining the solutions for question 12-14 & 15

please confirm answers are correct.

Learning Activity One

The students will form online groups based on the decision of the instructor and will discuss problems 12, 14 and 15 in chapter 1. They have online access to their professor to seek guidance and help. They will use a spreadsheet program to arrive at the best decision. Each group will write a short essay explaining the methodologies they used and why they decided to do so for each question. They post the essay in the class discussion forum. All the teams will upload their answers to the questions and their workbooks to the content management system for evaluation.

Chapter 1

#12 – Alyssa

The O’Neill Shoe Manufacturing Company will produce a special-style shoe if the order size is large enough to provide a reasonable profit. For each special-style order, the company incurs a fixed cost of $2000 for the production setup. The variable cost is $60 per pair, and each pair sells for $80.

Fixed costs = $2,000

Variable costs = $60

Selling price = $80

Let x indicate the number of pairs of shoes produced. Develop a mathematical model for the total cost of producing x pairs of shoes.

Total Cost = 60x + 2,000

Let P indicate the total profit. Develop a mathematical model for the total profit realized from an order for x pairs of shoes

P = 80x – (60x + 2,000)

P = 20x -2,000

What is the breakeven point?

80x = 60x + 2,000

40x = 2,000

x = 50 units or 50*80 = $4,000

Therefore, the breakeven point is 50 units, or $4,000 in sales.

METHODOLOGY: To solve this question, we used multiple mathematical models to get the desired output. The type of formula utilized is knows as y = mx + b, this is the linear equation and it used when there are fixed, and variable costs associated with a scenario. The breakeven point was determined by calculating the exact spot along the line in which revenue and expenses are equal.

#14 – Harsimran & Asma

Eastman Publishing Company is considering publishing a paperback textbook on spread- sheet applications for business. The fixed cost of manuscript preparation, textbook design, and production setup is estimated to be $160,000. Variable production and material costs are estimated to be $6 per book. Demand over the life of the book is estimated to be 4000 copies. The publisher plans to sell the text to college and university bookstores for $46 each.

What is the breakeven point?

What profit or loss can be anticipated with a demand of 3800 copies?

With a demand of 3800 copies, what is the minimum price per copy that the publisher must charge to break even?

If the publisher believes that the price per copy could be increased to $50.95 and not affect the anticipated demand of 4000 copies, what action would you recommend? What profit or loss can be anticipated?

#15 Joseph & Adandhu

Preliminary plans are underway for construction of a new stadium for a major league baseball team. City officials question the number and profitability of the luxury corporate boxes planned for the upper deck of the stadium. Corporations and selected individuals may purchase a box for $300,000. The fixed construction cost for the upper-deck area is estimated to be $4,500,000, with a variable cost of $150,000 for each box constructed.

What is the breakeven point for the number of luxury boxes in the new stadium?

Preliminary drawings for the stadium show that space is available for the construction of up to 50 luxury boxes. Promoters indicate that buyers are available and that all 50 could be sold if constructed. What is your recommendation concerning the construction of luxury boxes? What profit is anticipated?

Business decisions analysis assignment Essay

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