What to Submit Every project has a deliverable or deliverables, which are the files that must be submitted before your project can be assessed. For this project, you must submit the following: Letter...

What to Submit

Every project has a deliverable or deliverables, which are the files that must be submitted before your project can be assessed. For this project, you must submit the following:

1. 
   Letter and Financial Data
   
   You’ve promised to look over Daniel’s financial information and give him recommendations about some important decisions he will need to make regarding his business and personal life. You will submit a 250- to 300-word letter with your recommendations, as a Microsoft Word document, and the completedFinancial Data spreadsheetto support your recommendations.


2. 
   Email
   
   After reading your letter, Daniel wants some advice regarding the future state of his business and how he can manage costs. You will respond to his email in 250–300 words, analyzing the scenarios he sent you.

Project Instructions Competency In this project, you will demonstrate your mastery of the following competency: · Determine the impact of economic costs on organizational and individual decision making Scenario You work for Orizont Consulting, an economic consulting firm. In casual conversation with your cousin Daniel, he mentioned that he’s weighing several decisions around his own small business, which is a coffee-roasting factory in his hometown. Given your line of work, he’s asked if you would be willing to do him a favor by bringing an economics perspective to his business. Business has been going very well for Daniel. The shop is always busy, and he’s recently hired two new temporary employees. However, he hasn’t seen much of an increase in profits. He’s looking for ways to maximize his profits, as he is considering quitting his job to run the business full-time. Directions Part 1: Letter and Financial Data After your conversation with Daniel, you’ve promised to look over his financial information and write him a letter with some recommendations. *Note that for this part of the project, you will submit both your letter (as a 250- to 300-word Microsoft Word document) and your completed Financial Data spreadsheet. 1. As your work on your recommendations for Daniel, assume that his business is in a perfectly competitive market. 2. Daniel has recently hired two temporary employees, but he isn’t sure if he has the right number of workers. To help Daniel calculate how many employees he needs, complete the Marginal Product of Labor tab in the Financial Data spreadsheet (located in the Deliverables section) and address the following: · Determine the marginal revenue product of labor for workers in the organization, given the wage rate. For each additional labor input Daniel adds, how much additional revenue does he get? · Determine how many workers Daniel should employ, explaining the impact of the marginal revenue product of labor on organizational decision making. · How many total worker should Daniel employ? · Why does an organization stop hiring workers? Make sure you explain the concept of diminishing return. 3. Daniel is considering the cost of running the business and whether or not he should quit his day job as a customer service specialist earning $45,000 annually. To help Daniel make this decision, answer the following: · Categorize the economic costs below as fixed or variable in the short run. Explain your rationale for each one and whether or not they will differ in the long run: · Rent · Wages · Raw materials · Energy costs · Phone and internet services · Complete the Daily Production Cost Schedule tab in the Financial Data spreadsheet to determine the annual profit/loss of Daniel’s business based on profit-maximizing production. Include the following in your response: · What is the annual profit/loss of Daniel’s business? · What is the profit-maximizing production level? Explain the process you followed to determine the profit-maximizing production level (quantity). · What would happen if Daniel produces above that amount? · Using your findings above, determine whether or not Daniel should quit his job as a customer service specialist, referencing the concepts of opportunity cost and economic profit. Assume Daniel operates his factory five days a week and works as a customer service specialist five days a week as well. Part 2: Email After reading your letter with your recommendations, Daniel has sent you an email expressing some concerns about the future state of his business. Recent events have made him think that the costs of running his business will increase. He has asked you to reply to his email and explain how he can manage his costs in the long run. Use microeconomics terms and concepts, and in your 250- to 300-word response, make sure you address the following scenarios that Daniel has sent you: · I see that wages are going up and the price of machines is going down. What should I do in the future? Why? · Other people are making more money than me in this industry, even though they have bigger operations. Why are they making more money if they have to pay more workers and buy more equipment? What to Submit Every project has a deliverable or deliverables, which are the files that must be submitted before your project can be assessed. For this project, you must submit the following: 1. Letter and Financial Data You’ve promised to look over Daniel’s financial information and give him recommendations about some important decisions he will need to make regarding his business and personal life. You will submit a 250- to 300-word letter with your recommendations, as a Microsoft Word document, and the completed Financial Data spreadsheet to support your recommendations. 2. Email After reading your letter, Daniel wants some advice regarding the future state of his business and how he can manage costs. You will respond to his email in 250–300 words, analyzing the scenarios he sent you. Marginal Product of Labor Number of WorkersTotal RevenueMarginal Labor CostMarginal Revenue Product of Labor 0$ - 0$ 176.00 1$ 1,000.00$ 176.00 2$ 1,450.00$ 176.00 3$ 1,750.00$ 176.00 4$ 1,950.00$ 176.00 5$ 2,050.00$ 176.00 6$ 2,100.00$ 176.00 7$ 2,110.00$ 176.00 Daily Production Cost Schedule Daily Production Cost Schedule QuantityMR = Price per UnitTFCTVCAFCAVCTCATCMC 0$ 325.00$ 100.00 1$ 325.00$ 100.00$ 400.00 2$ 325.00$ 100.00$ 600.00 3$ 325.00$ 100.00$ 750.00 4$ 325.00$ 100.00$ 950.00 5$ 325.00$ 100.00$ 1,200.00 6$ 325.00$ 100.00$ 1,525.00 7$ 325.00$ 100.00$ 1,950.00 Conventions MRMarginal revenue TFC Total fixed cost TVCTotal variable cost AFCAverage fixed cost AVCAverage variable cost TCTotal cost ATCAverage total cost MCMarginal cost Running head: PREMIUM BRANDS HOLDING CORPORATION Report Analysis Student Name: Larry Course Name: ECO-20045-XC058 Market Structure Impact 21DA03 This report has been drafted by Orizont Consulting, a small but growing economic consulting firm. The city has an opportunity to grow its restaurant market which will lead to increase in tourism and will eventually lead to a position towards profit and high revenue from this influx. The report is identified under two major perspectives one being the market analysis and the other being internet providers. Part 1 – Market Analysis The report will be defined in a manner that provides a report under the three-pointers which can be explained as below; In connection with the short run analysis after the review and analysis: The equilibrium quantity (EQ) = 500 The equilibrium price = $2 Demand/Market price = $8 The average total cost (ATC) at the equilibrium quantity = $7 Economic profit is calculated as follows = (D - ATC) x EQ. Or in words, economic profit = (the demand price minus the average total cost) times the equilibrium quantity = $ 8 - $7 x 500 = 500. (99dollarsocial.com, 2016) In terms of the Long Run process the following aspects are expressed: The impact of more competition in the restaurant market will lead to a condition which is actually spreading the environment as well as spending the resources widely between the cities. Understanding of the entry or exit of restaurants, it is evident that exit will be an obvious option for some restaurants due to the nature of the market which is a competitive market, in connection with other businesses in the market attracting new customers. Analyzing Economic Profits; profit for some restaurants will reduce primarily because competition will increase and spending will be divided between more restaurants. Reviewing Product and Price Value; both will also be impacted on a larger scale and in every aspect mainly because of the inclusion of newer restaurants. Existing/older restaurants will have to lower their prices and also make available products that will be more appealing to their customers due to competition from new restaurants in the market, meal size/quantity could also be affected or rather the ingredients being used. Therefore existing restaurants will start experiencing decrease in profit due to these factors. In terms of the third pointers which being the Strategies, it is essential to understand that the following review must be done The first two strategies that both new and existing restaurants can apply /use to be successful in this larger market are as follows: The first and the very crucial one is to consider going online and making a good use of the social media, nowadays the trend has changed so much that the need of the hour has also changed, being visible online especially on social media provides an added edge. On the other hand, it becomes easy and quick for the clients/customers to review product/s from a better perspective as customers will be able to have an online/inside view of what they will be offering. The other strategy is for every restaurant to be listed and enrolled under various food applications that are available in the market such as Door Dash, GoPuff, and Uber eats, it is an effective way to get restaurants noticed, and it will lead to better market growth and a good level of clientele reach and approach. What existing restaurants can do to defend their market share against new restaurants. The first one is to consider investing in a good and additional customer care training program to train their staff’s to provide exceptional service that people are going to want to come back for. They should also aim to provide their guest with free Wi-Fi. The other being that the restaurants may go for high-level aggressive strategies which are: dealing with the property and place promotions to combat those attempting to take more than their fair share of the market thereby, defining product differentiation policies. Lastly and in tandem with the first point is that changes to their prices and service/products used, will have to be made to compete against new restaurants and they must ensure their customers that their products, service, and menu are better than the new competitors. What new restaurants can do to be successful in the Market. Considering the new restaurants, the major contribution which may be possible is the aggressive strategies and the strong market presence (Gitman, Lawrence, et al, n.d). Well-established goodwill and reputation may help in picking up customers. The other well-suited basis is to assure that the new restaurant owners should consider a possibility of coming into the market with lower pricing, good quality and quantity at the same time, as this will be identified as a positive approach towards attracting and building a good customer base. Part 2 –