Question

The Sydney Morning herald Coca-Cola Amatil to close South Australia plant, cut 180 jobs Patrick Hatch Published: February 22, 2017 10:43AM Coca-Cola Amatil will close its manufacturing plant in South Australia, cutting about 180 jobs, and shift the work to Queensland as part of a $90 million supply chain restructure. ad reviewed its As part of its profit announcement on Wednesday, the beverage giant said it h erations across Australia and concluded it should increase production in Queensland and Western Australia and close its plant in the Adelaide suburb of Thebarton.

Answer 1

as per HomeworkLib policy abcd will anwer

FORMULAS USED FOR CALCULATION OF ANSWER

VC = WAGES * NUMBERS OF LABOR EMPLOYED

TR = PRICE * QUANTITY

MR = [TR_N - TR_N -1] [ Q_N -Q_N -1 ]

MC =[ TC -TC_N -1 ] [ Q_N -Q_N -1 ]

TC = FIXED COSTS + VARIABLE COST  

AFC =FC / Q , AVC =VC / Q , ATC =TC / Q

PROFIT = TR - TC AND PROFIT MAX QUALITY IS TAKEN WHERE MR = MC OR MR IS JUST GREATER THAN MC

WORKERS | GUANITY OF | FIXED İ VARAI ABLE İ TOTAL | AFC | AVC | ATC | MC | TR | MR | PROFIT PRODUCTION COST COST COST 1000 O 1000 50 125 62.5 125 300 15950 1000 1750 1000 i 1000 1000 1250 1000 1500 1000 1750 1000 i 2000 1500 16. | 8.3 | 25 | 6.25 | 00 | 15 |-600 1750 15.4 12.5 3.13 2100 15 350 1000 5 510 417 3000 15 1000 2000 425.29.46.25 3600 15 1350 3.8 5.8 9.6 125 3900 15 1400 2750 3.7 6.5 10.3 31.25 4020 15 1270 3000 3.774 11 625 4080 15 1080

160 T -SHIRTS WILL BE PRODUCED AND 6 WORKERS WILL BE EMPLOYED TO EARN A MAX POLICY OF 1400

IF PRICE FALLS TO $5

FROM THE ANOVE DIAGRAM WILL BE SAME JUST MR TR PROFIT WILL CHANGE

PROFIT 100 -1050 1050 1300 1340 410

1360 5 -1640

THE PRICE OF $5 EQUAL THE MIN AVC OF $5 WHICH IS A SHUTDOWN POINT Q^X = 200 UNITS THE FIRM WILL HAVE AN OPTION EITHER CONTINUE OR SHUT DOWN OPERATIONS THE FORM IS JUST ABLE TO COVER VARIABLE COSTS

IN THE LONG RUN THE PRICE WOULD BE EQUAL TO MIN ATC = 89.4 AT Q = 240 UNITS