This document provides details about a consulting assignment to advise a company on whether to shut down or continue operations. The company employs 100 workers producing 6,000 units per month. Daily wages are $70 per worker, output sells for $32 per unit, and other variable costs are $2,000 per day. Fixed costs are high enough that total costs exceed total revenue. The marginal cost per unit is $30. The consultant must analyze the company's financial performance, environmental factors impacting decisions, and recommend improvements or circumstances requiring shutdown.

1. Assignment 2 "Operations Decision"
Assume you have been hired as a managing consultant by a company to offer some advice that will help it make a
decision as to whether it should shut down completely or continue its operations. It currently uses 100 workers to
produce 6,000 units of output per month (working 20 days / month). The daily wage (per worker) is $70, and the price
of the firm's output is $32. The cost of other variable inputs is $2,000 per day. You are told that the firm's fixed cost is
“high enough” so that the firm's total costs exceed its total revenue. The marginal cost of the last unit is $30. (Ch 7 &
8 to solve)
This assignment allows you to determine the specific details about this fictitious company in order to conduct an
environmental scan of this company.
Write a three to four (4-5) page paper in which you:
Briefly describe the details of the fictitious business that you created for this assignment. Assess the current
environmental scan factors that are relevant to the decision making process. Determine the factors that will have the
greatest impact on plant operations and management’s decision to continue or discontinue operations. Provide a
rationale for your determination. Evaluate the 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 short term and
long term and how each factor influences managerial decisions. Be sure to show the calculations that helped you
reach your conclusions. Recommend how the company can improve its profitability to deliver more value to its
stakeholders. Then, develop a brief plan to implement the recommendations. Assess the circumstances in which the
company should discontinue operations and how management should react when confronted with these
circumstances. Provide a rationale with your response. Use at least (4) high-quality academic resources in this
assignment. Note: Wikipedia and other Websites do not qualify as academic resources.
Your assignment must follow these formatting requirements:
Be typed, double-spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and
references must follow APA or school-specific format. Check with your professor for any additional instructions.
Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course
title, and the date. The cover page and the reference page are not included in the required assignment page length.