Managerial economics

Jamie is considering leaving her current job, which pays $75,000 per year, to start a new company that
develops applications for smartphones. Based on market research, she can sell about 50,000 units during
the first year at a price of $4 per unit. With annual overhead costs and operating expenses amounting to
$145,000. Jamie expects a profit margin of 20 percent. This margin is 5 percent larger than that of her
largest competitor, Apps, Inc.

If Jamie decides to embark on her new venture, what will her accounting costs be during the first year of
operation?
Her company’s implicit costs?
Her company’s opportunity costs?
Suppose that Jamie’s estimated selling price is lower than originally projected during the first year. How
much revenue would she need in order to earn:
Positive accounting profits?
Positive economic profit. Use in text citation that matches peer reviewed references at least two or more.

Sample Solution

Structure approaches to improve fittingness

Fittingness reflects class or amiability and is characterized as “the voidance of disregarding social or relational standards, principles, or desire (Kova, 1997).

Correspondence capability might be accomplished by picking the most proper channel, and the one that will be successful or achieve one’s objective (Kova, 1997). The picked channel might be a viable method to accomplish the objective, yet it might not have a required level of social nearness or lavishness.

The apparent propriety and adequacy of five correspondence channels were configuration to improve correspondence inside Simplicity Pastry, for example, meeting, gathering, workshops, email, and video meetings (Kova, 1997).

Workshops: One of the most problems that are begging to be addressed inside Simplicity Pastry is the need to improve correspondence and relational aptitudes (Kova, 1997). Viable relational abilities are a center competency at all levels particularly senior supervisory crew, division groups, deals power, and client administration. Workshop can be use to improve effortlessness correspondence level among worker (Kova, 1997). Straightforwardness Pastry Company will offer intelligent workshops modified for their customers that address their particular and one of a kind issues. While this workshop is a piece of the interchanges arrangement, the other piece of the arrangement rests with the members. In the event that they need to turn out to be progressively viable in relational correspondence, they should be eager to work and during the workshop, however after the workshop. The workshop’s objective ought to be at the focal point of all arranging. Innovative activities will get everybody loose and included, and remember to catch up a short time later: Although it tends to be alarming to hear what individuals truly thought of all your diligent work, it will just improve the following occasion and the business. The workshop will prepare staffs and upgrade their insight and abilities in correspondence.

Meetings: A yearly gathering will unite operators, pros and REC staff for casual systems administration, program arranging and formal instructive open doors that address the association’s and person’s issues (Kova, 1997). Meetings give time to yearly program arranging work. Effortlessness Pastry will have a decent measure of time to chip away at their program plans and update data recorded on their site. The meeting will likewise give yearly instruction experience identified with the mission of Simplicity Pastry the and consequently follow government necessities for yearly instructive in-administration (Kova, 1997).

Gatherings: The motivation behind the all-staff gatherings is to proceed to upgrade and advance two-route correspondence among all staff so as to feature and give data with respect to authoritative wide goals, qualities and beliefs (Kova, 1997). The essential advantages of getting together on more than one occasion per year keeps up and construct network among staff. Different advantages of gatherings are: To improve correspondence and worker relations between all division bunches inside Simplicity Pastry, chances to praise victories and give acknowledgment to meriting and submitted staff and it is a perfect time to request staff contribution on future hierarchical advancement exercises (Kova, 1997). Meeting helps efficiency of organizations since it give the staff chances to voice their feeling, resolve issues before struggle emerge, etc.

Messages: Electronic mail (email), by its very structure is fit to fill in as one of the most handy correspondence mediums accessible. It tends to be utilized for all correspondence inside the association whenever utilized appropriately (Kova, 1997). Sending and Receiving email to and from Simplicity Pastry will be a straightforward undertaking (if representatives can deal with the composing). Straightforward errands like recognizing receipt of email and reacting rapidly can make correspondence through email productive (Kova, 1997). Anyway Simplicity can make email simpler for all it partners by establishing component, for example,

arrangement automated assistants to demonstrate that our email customer has to be sure gotten the mail

peruse email, act fittingly, set ourselves time-breaking points to react to/remark on email

solicitation to be expelled from a correspondence list which we are not associated with (the procedure or the correspondence), to evade false discernment to the rest

use email to reinforcement discussion or correspondence of some other sort

Video conferencing: A video gathering is a quicker method to speak with partners of Simplicity Pastry. If there should be an occurrence of any crises or long separation for instance a financial specialist can’t make it to a gathering base on specific conditions a video telephone call would be reasonable to lead the gathering with no missing data (Kova, 1997). Traveling to inaccessible area to participate in up close and personal associations with clients, accomplices, and partners is a noble business custom yet can be wiped out by conveying over video. With tremendous enhancements in quality, accessibility, and convenience, and with the capacity to collaborate and share content in top notch, the present video conferencing is as near “being there” as one can get without really making the excursion. Travel decrease is the most effortless cost to compute when deciding ROI of a video conferencing venture inside Simplicity Pastry.

Actualize enhancements to guarantee more prominent mix of frameworks of correspondence in that association

Straightforwardness Pastry needs to guarantee that they accomplish full incorporation and use of video all through your association. In spite of the fact that there are clear substantial advantages to the utilization of video, a few representatives will require extra support and preparing to coordinate video into their working lives. Through key gaining from clients steps were distinguished to help make progress in the execution of video conferencing framework inside Simplicity Pastry. Effortlessness Pastry should Securing Executive Sponsorship once Simplicity Pastry has settled on the choice to buy video correspondences and introduced the gear, it is basic that Simplicity Pastry secure an Executive Sponsor to put resources into the innovation.

Preparing is a crucial in any association in this manner Simplicity Pastry ought to guarantee that workers feel good enough with video to begin utilizing it when it is sent and continue utilizing it. An incredible method to uncover Simplicity Pastry staff to video is to hold Open Days or sort out a 30 moment instructional course for all representatives, strolling them through the nuts and bolts of putting a call.

The execution of Workshops will rouse staff. This is an extraordinary path for Simplicity staff to pick up learning and data that will be helpfully to both the organization and partners. Then again gathering and meeting is an extraordinary method to get criticism from staff. As this show how significant their supposition are to the business achievement. Meeting will likewise give a quick react to inquiries pose just as arriving at consolvement without or before strife emerges. Meeting additionally empowers coordinated effort and commitment of staff. This settles on staff feels include in basic leadership.

By actualizing every one of the enhancements, Simplicity Pastry will appreciate a scope of advantages, for example, increment in representative profitability, increment efficiency of the business, quantifiable rate of return for partners, improve brand picture, manufacture solid relationship among staff, the executives and providers, etc.

Make an individual intend to improve possess relational abilities

Before the specialist begins to make an individual intend to improve possess relational abilities the scientist must comprehend the two parts of straightforwardness baked good. These viewpoints are the setting which is the earth which the analyst works both inside and remotely, lastly the substance which is the job of the scientist inside Simplicity Pastry. The specialist should likewise realize the PEST FACTORS which will influence the association remotely

The substance wherein the scientist works was that the analyst needs to know the polices and principles and guideline of straightforwardness cake so as to do the assignment given. While the setting where the specialist works was to recognized the variables that will influence Simplicity Pastry remotely by doing a natural output. The elements that influence Simplicity Pastry are Political factor which manage government laws and guideline of the nation that all business needs to cling to. For instance when the administration raises imposes on nourishment item this will influence Simplicity Pastry since it will just drive them to raise the cost of their item and purchaser may whine and look for other option. All things considered Simplicity Pastry won’t find the opportunity to sell their item as they feel vital in light of the laws and guideline of the nation.

A financial factor that may influence Simplicity Pastry is that base on the retreat emergency that Jamaica is confronting Simplicity will feel the impact of it emphatically. That as well as with the debasement of the Jamaica dollars individuals are grumbling about discovering nourishment to help themselves and that there is no activity in the nation. Social factors that may influence Simplicity Pastry Through an investigation of clients and potential clients, their adjustments in demeanors, ways of life and sentiments, were found that the great wedding cake is a custom of the past is as yet inclining in the 21century anyway the examination as demonstrated that the cupcake business is a developing realm to supplant old conventions. Innovation factors this factor can influence Simplicity in the most emotional manner. Innovation is what is slanting in the 21 century, thusly innovation is use to speak with clients and workers, and even providers. Innovation is basic to any association since it’s a method for conveying to the crowds.

This question has been answered.

Get Answer
WeCreativez WhatsApp Support
Our customer support team is here to answer your questions. Ask us anything!
👋 Hi, Welcome to Compliant Papers.