Running head: Cost Concepts, and Market Structure Proposal 1
Revenue, Cost Concepts, and Market Structure Proposal
University of Phoenix
June 30, 2010
Revenue, Cost Concepts, and Market Structure Proposal 2
The following paper will analyzes Thomas Money Service scenario data and make recommendations to the company’s increasing revenue. This paper will analyze and determine how to fixed variable cost that should to maximize the profits, achieve ideal productions levels, and identify methods to reduce costs. Recommendations should involve good decision making skills, planning, teaching, coaching, educating, and analyzing the current products and services can determine the future forecast for Thomas Money Service Inc. In order for Thomas Money Service to obtain their profit maximizing output quantity, the organization must start by recognizing that profit is equal to total revenue minus total cost. Recommendations for Thomas Money Service in a falling economy for organization should be decreasing prices until the economy start moving forward in a positive direction. Other recommendations can include collaborating on the economic problems or conditions and researching a solution to accommodate the customers that surrounds the organization. In today’s struggling and uncertain economy organizations can market their products through marketing such as advertising, Internet, word of mouth, newspapers, radio, and television Finally, attached chart represents variable cost, marginal cost, profit, price and other activities within organization of Thomas Money Service.
Revenue, Cost Concepts, and Market Structure Proposal 3
Recommendations for Thomas Money Service Increasing Revenue
Established in 1940 Thomas Money Service Inc is a consumer finance company known for granting small loans for household needs. In addition, the organization expanded their services by issuing business loans, commercial real estate’s loans and business acquisition financing. The first recommendation should involve implementing a plan for the future of Thomas Money Service. “This plan should include products in the organization product line. This plan will include advertising marketing campaigns, along with a timeline. Each product should be assessed and gauged for the amount of income predictability it will bring. The list should be prioritized and those items with the highest stability should have top priority for implementation” (www.ezinearticles.com). The second recommendation involves in analyzing the current products and services which gives the organization a good idea with a high level of monetary stability. In addition, contract agreements have been known to be a stable income that the organization can rely on for future revenue. The third recommendation includes good decision making skills, time management skills, critical thinking skills, leadership skills, and problem solution skills. In addition, employees with these skills can make last minute decisions base on the past recommendations with the organization. Furthermore, employees can think outside the box if several employees are validated in the decision making solution. The forth recommendation includes training, educating, and coaching employees about the products and services of Thomas Money Service. Most importantly, hands on training are a practical resource the organization can use to implement goals for the organization Revenue, Cost Concepts, and Market Structure Proposal 4
Moreover, in this economic time Thomas Money Service competes with competitors; however the organization can increase their profits by marginal cost which equals to their marginal revenue. Achieve Idea Production Levels
To achieve ideal production levels an individual must “under the field macroeconomics, the production possibly frontier (PPF) represents the point at which an economy is most efficiently...
References: McConnell, C. R. ,Brue, S. L., & Flynn, S.M. (2009). Economics: Principles, problems, and policies (18th ed.). New York: McGraw-Hill Irwin
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