Cost of Firm for Jiffy Wiffy Company

Introduction Business owners need to be cognizant of the many a(prenominal) be that sidestep the construction of a firm. Because all be are non the same, they are different. Some costs should be evaluated for pattern of devising a business decision. The objective of this paper is to resume into favor of various cost behaviors while attempting to analyze and shew costs that are required to open new pose or instals for minute Wiffy Company. Jiffy Wiffy Company is the firm which is own by Greg and Dem to recrudesce pop-tarts and power-tarts. The go with is in the growth re-create and bargain has been averaged 10,000, 5,000, and 2,000 forbid per week in Washington DC, parvenu York City, and Los Angeles separately (Sloboda, 2005). In resolution to high demand of its pop-tarts and power-tarts in those collar major commercializes, Jiffy Wiffy has to open new plant to produce pop-tarts and power-tarts. There are many options available to the company; however, J iffy Wiffy is narrow its choice to the following two plans. * ersatz mean I: There bequeath be a wholeness plant to excite the tutti fruitti pop-tarts and Power Tarts. The plant has the energy to pee-pee 20,000 bars a week at a restore cost of $5,000 per week and each week covariant costs of 70 cents per bar * Alternative Plan II: There will be 3 plants, one in each market to merely shipping cost. Each plant has the capacity to make 12,000, 6000, and 3,000 bars with weekly fixed costs of $4,000, $3000, and $2000 per week and weekly variable costs of 60 cents per bar Fixed be and Variable Costs One important stage that inescapably to be considered when evaluating a cost is its behavior, and how it changes in response to a change in activity level (Compton & adenosine monophosphate;... If you want to draw a full essay, order it on our website: BestEssayCheap.com

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