ECO 550 Week 3 Assignment 1 Operations DecisionClick this link to get the tutorial:http://homeworkfox.com/tutorials/economics/4260/eco-550-week-3-assignment-1-operations-decision/Assignment 1: Operations DecisionAssume you have been hired as a managing consultant by a company to offer some advice thatwill help it make a decision as to whether it should shut down completely or continue itsoperations. It currently uses 100 workers to produce 6,000 units of output per month (working 20days / month). The daily wage (per worker) is $70, and the price of the firms output is $32. Thecost of other variable inputs is $2,000 per day. You are told that the firms fixed cost is “highenough” so that the firms total costs exceed its total revenue. The marginal cost of the last unit is$30.This assignment allows you to determine the specific details about this fictitious company inorder to conduct an environmental scan of this company.Write a three to four (3-4) page paper in which you:Briefly describe the details of the fictitious business that you created for this assignment. Assessthe current environmental scan factors. Determine the factors that will have the greatest impacton plant operations and management’s decision to continue or discontinue operations. Evaluatethe financial performance of the company using the information provided in the scenario.Consider all the key drivers of performance, such as company profit or loss for both the shortterm and long term. Be sure to show the calculations that helped you reach your conclusions.Recommend how the company can improve its profitability. Then, develop a brief plan toimplement the recommendations. Assess the circumstances in which the company shoulddiscontinue operations. Provide a rationale with your response. Use at least three (3) high-qualityacademic resources in this assignment. Note: Wikipedia and other Websites do not qualify asacademic resources.Your assignment must follow these formatting requirements:Be typed, double-spaced, using Times New Roman font (size 12), with one-inch margins on allsides; citations and references must follow APA or school-specific format. Check with yourprofessor for any additional instructions. Include a cover page containing the title of theassignment, the student’s name, the professor’s name, the course title, and the date. The coverpage and the reference page are not included in the required assignment page length.The specific course learning outcomes associated with this assignment are:
Apply the concepts of supply and demand to determine the impact of changes in marketconditions in the short run and long run, and the economic impact on a company’s operations.Examine the factors that affect short-term and long-term production decisions. Use short-run andlong-run firm production and cost functions to evaluate the impact on industries. Use technologyand information resources to research issues in managerial economics and globalization. Writeclearly and concisely about managerial economics and globalization using proper writingmechanics.