I have 1 day to write a paper and no time some help please paper needs to be one

Question

I have 1 day to write a paper and no time some help please paper needs to be one page.

My answer needs to show that you have read and thoroughly understood the changes happening to the company. You will be asked to state the exact results of your calculations and compare the two alternatives. The correct calculations and awareness of the important numbers should lead to the ideal recommendation.

You work as a junior Economic consultant. You have been asked by the Director of "Song of Salmon Shipping Company" Dr. Emre Erturk, to write a response to the following enquiry. This is a shipping transportation company, a hauler for fish and sea food.

The Fixed Costs:

The Fixed Costs:

Explanation / Answer

CONCLUSION:

WE CAN SEE THAT PROFIT PER MILE INCRESES TO 1.29 FROM 0.14, WHICH IS A RADICAL CHANGE.
HENCE PROPOSAL SHOULD BE ACCEPTED.

REPORT:

WE CAN SEE IN THE ABOVE DATA THAT, THE REVENUE INCRESES AND THE MILES ALSO INCRESES IN THE NEW PROPOSAL. WHICH HAS A MAJOR IMPACT ON THE PROFIT OF THE FIRM.

IN THE GIVEN DATA, VARIBLE COST INCREASES MORE THAN THAT OF FIXED COST, WHICH DIRECTLY AFFECTS THE PROFITABILITY.

FIXED COST INCRESES BY 11500, WHEREAS VARIBLE COST INCRESES BY 49140.

WE CAN SAY THAT, FIRM IS BETTER OFF IN ACCEPTING NEW PROPOSAL AND IT WILL BE BENEFICIAL FOR ITS SUSTAINENECE AND GROWTH. THE FIRM PROFITABILITY ALSO INCRESES.

FURTHER WE CAN SAY THAT,

1) THE COMPANY IS NOW MORE FUEL EFFICIENT THAT IS BY 3%.

2) OPERATIVE BONUS ALSO INCREASES BY 0.05, WHICH GIVES OPERATIVES AN INCENTIVE TO WORK HARD.

3) OFFICE RUNNING COST REMIANS SAME, WHICH INDICATES FIRM IS NOW ON A SAME POSITION AS EARLIER,.

4) OFFICE EUIP, RATES AND TAXES AND INSURANCE REMAINS SAME.

5) SHIP MAINENANCE REMAINS SAME.

NOW, WE CAN ADD UP A CONCLUSION THAT THE FIRM PROFIT INCRESES RADICALLY FROM 10200 to 112560... which is a positive point.

TOTAL FIXED COST INCRESES AND VARIBLE COST INCRESES, CONTRIBUTUON INCRESES BY 113860.

CONTRIBUTION PER MILE FOR NEW PRPOPSAL = 7.63, WHICH IS A 0.2 INCRESES ONLY.

AND THE BREAK EVEN POINT in old situation is 72570

WITH MILES BEING 75000, BREAK EVEN POINT = 73608, CONTRIBUTION PR MILE = 7.34

WITH NEW PROPSAL, BREAK EVEN POINT = 72236, CONTRIBUTION PER MILE = 7.63

HENCE, BREAK EVEN POINT WITH NEW PROPOSAL ALSO INCRESES TO 72236.

THE BASIC STRUCTURE OF FIRM CHANGES AND THE PROFITABILITY INCRESES, WITH FIXED COST NOT INCRESING AT A HIGHER RATE WHICH IS A GOOD SIGN FOR LONG TERM GROWTH.

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