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Essay / Research Paper Abstract
This 3 page paper looks at a case study supplied by the student. A firm is making a loss; the paper looks at the costs and non financial factors to consider whether or not the firms should be closed. The bibliography cites 4 sources.
Page Count:
3 pages (~225 words per page)
File: TS14_TEnonproft.rtf
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Unformatted sample text from the term paper:
to a business other than the profits, it is unlikely that when a business or a facility does not make a profit can be sustained, unless it is supporting other
profitable operations (Thompson, 2005). When deciding whether or not to keep an unprofitable facility there are several considering that need to be taken into account. In this report we
will look at the current cost and revenue structure using this as the basis for a recommendation whether an unprofitable operation should remain open. 2. Economic Considerations The
figures are given for the labour and variable costs, but not the fixed costs. The revenue per unit is also given. From this we can calculate to the total cost
with the exception of the fixed costs, this will give us an idea of the profits or losses prior t the fixed costs. Costs Employees (a) 70,000
Wages per day per employee (b) 100 Total wages per day (c ) (a x b) 7,000,000 Variable costs per day (d) 5,000,000 Total costs per day (c +
d) 12,000,000 These are the total costs we have not we need to look at the revenue Revenue Units per day 300,000 Revenue per unit 30 Revenue per
day 9,000,000 We are told that there are 300,000 units a day manufactured and that the cost to the buyers is 30, this means we can calculate the revenue. From
this it is clear the facility is making large losses as there are costs that are 3,000,000 more than the costs. In looking at whether this could be viable then
we can look at the break even point then for the costs we have, not allowing for the fixed costs, we can see that cost divided by the units sold
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