Homework
Instructions
Tracy, the manager at Ruby Red Movie Theater, is extremely worried about concession stand sales. Tracy has indicated that she is at a loss regarding how many employees should be working in the concession stand area and how many concession stand items should be sold per day. Tracy is even considering closing the concession stand area. Output, labor, and price information for items sold in the concession stand area have been provided in the Unit V Homework Worksheet. Your homework is to help Tracy figure out the optimal number of workers and the number of items that should be sold daily. Let's keep the concession stand open! Access the Homework Worksheet in Blackboard. Complete the following in the Unit V Homework Worksheet.
Part I
Complete the table, calculating the total variable cost of labor, total cost per day, total revenue, profit, average variable cost, average fixed cost, average total cost, marginal cost, and marginal revenue.
Part II
Answer the questions after the table as a guide to use when writing your document.
Part III
Write a document of at least 750 words.
1. Briefly describe the calculations you made when filling in the table data.
2. Indicate the profit-maximizing level of output and employees along with the two ways you found this optimal level. This profit-maximizing level of output and employees will tell you how to keep the concession stand open.
3. Describe the average price level for concession stand items that would be required to force the theater to shut down the concession stand in the short run, and include how you determined this level.
Format your homework according to the give formatting requirements:
1. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the homework, the course title, the student's name, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.
Attachment:- Homework-Worksheet.rar