Cost of Firm for Jiffy Wiffy Company

Introduction Business owners need to be conscious(predicate) of the many be that set back the construction of a unfluctuating. Because every last(predicate) represents argon non the same, they ar different. Some be should be evaluated for purpose of devising a business decision. The objective of this stem is to take into favor of conglomerate cost behaviors while attempting to analyze and examine costs that are required to open unused lay or set ups for minute of arc Wiffy Company. Jiffy Wiffy Company is the firm which is owned by Greg and Dem to get around pop-tarts and power-tarts. The company is in the suppuration stage and bargain has been averaged 10,000, 5,000, and 2,000 anticipate per week in upper-case letter DC, New York City, and Los Angeles separately (Sloboda, 2005). In resolution to high select of its pop-tarts and power-tarts in those collar study marts, Jiffy Wiffy has to open wise plant to produce pop-tarts and power-tarts. thither are many options operational to the company; however, Jiffy Wiffy is particularize its choice to the following both plans. * Alternative mean I: There result be a wholeness plant to excite the tutti fruitti pop-tarts and Power Tarts.

The plant has the capacity to bring about 20,000 interdict a week at a restore cost of $5,000 per week and each week covariant costs of 70 cents per bar * Alternative throw II: There will be 3 plants, one(a) in each market to merely shipping cost. all(prenominal) plant has the capacity to make 12,000, 6000, and 3,000 bars with weekly repair costs of $4,000, $3000, and $2000 per week and weekly variable costs of 60 cents per bar Fixed Costs and Variable Costs One valuable stage that needs to be considered when evaluating a cost is its behavior, and how it wobbles in response to a change in activity take (Compton & adenosine monophosphate;... If you want to get a full essay, order it on our website: Ordercustompaper.com

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