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Report:

In the following charts I will explain to that the costs exceed the firms’ total revenue.

Manager’s Report: Daily Labor Cost

The Quantity of Output by the firm is 300,000; by taking the output of the firm, and adding it by the price of each unit; which is $30.00, the total cost equals 300,030. The firm currently has 70,000 employees, the daily cost for each employee is $100.00; therefore I took 70,000 and times it by $100.00 to get the final cost of labor which currently is 7,000,000.

Short Run Cost: Daily

The above chart is the firm’s short run daily costs. As mentioned earlier, the firm’s total output is 300,030. Fixed cost only includes the amount for the employees to work at the firm; due to lack of information I was not able to proceed with proper totals. In order to configure the total amount for the fixed cost, I would need to know the daily/monthly/yearly cost for the building, equipment, shipping and etc.

Variable costs “is the cost that varies as the firm changes its output.” (2006, O’Sullivan)

Variable cost only includes labor, do to lack of information. Variable cost are all cost that deal directly to the production level.

Total Cost is the amount of all levels of output. In order to get the amount of total cost I added the fixed cost (7,000,000),