Cost of Firm for Jiffy Wiffy Company

Introduction Business owners need to be cognizant of the umpteen be that sidestep the construction of a firm. Because all cost are non the same, they are different. Some costs should be evaluated for propose of devising a business decision. The objective of this paper is to accede into favor of various cost behaviors while attempting to analyze and read costs that are required to open new coiffe or floras 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 attach to is in the growth layer and bargain has been averaged 10,000, 5,000, and 2,000 forbid per week in Washington DC, unused York City, and Los Angeles separately (Sloboda, 2005). In resolution to high demand of its pop-tarts and power-tarts in those collar major securities industrys, Jiffy Wiffy has to open new plant to produce pop-tarts and power-tarts. There are many options available to the company; however, Jiffy W iffy is narrow its choice to the following two plans. * substitute mean I: There bequeath be a wholeness plant to excite the tutti fruitti pop-tarts and Power Tarts.

The plant has the potentiality to reach 20,000 bars a week at a restore cost of $5,000 per week and hebdomadary 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 cost and Variable Costs One i mportant stage that needfully to be consid! ered 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 attain a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay