Enable contrast version

# Tutor profile: Anil D.

Inactive
Anil D.
Part-time Tutor from past 20 years; Major in Commerce and a PhD holder
Tutor Satisfaction Guarantee

## Questions

### Subject:Writing

TutorMe
Question:

Every organization faces significant problems if not dealt with effectively and in a time-bound manner. In a law firm also, there are severe quality problems faced making it profusely difficult to cope up with the growing competitive market conditions. But in addition to the quality issues, it faces operation management problems as well. Highlight 10 such problems with the solutions which can be offered to resolve them for better functioning of a legal organization.

Inactive
Anil D.

### Subject:Economics

TutorMe
Question:

Jammies in Sandwood sells bars of exotic soap made by Glister Soaps Ltd. They pay Glister Soaps Ltd. \$2.00 for each bar of soap Jammies sells. Jammies has experienced very strong sales since the first of the year, averaging 300 soap bars a month at a price of \$5.00 a bar from January through March. Encountering such strong sales, Jammies increased the price of Glister Soaps Ltd. to \$6.00 in April. They sold 200 bars of Glister Soaps Ltd. in April. At \$6.00 a bar, is Jammies pricing the soap at a level that maximizes their profits? Why or why not?

Inactive
Anil D.

Total Revenue (TR) earned by Jammies per month (30 days per month) = \$5.00 * 300 = \$1,500 Hence TR earned from January to March (3 months) = \$1,500 * 3 = \$4,500. Total Cost (TC) borne by Jammies per month (payment to Glister Soaps Ltd.) = \$2.00 * 300 = \$600 Hence TC borne by Jammies from January to March (3 months) = \$600 * 3 = \$1,800 Thus Profit (π) earned by Jammies = 4500 – 1800 = \$2,700 TR of Jammies in April = 6 * 200 = \$1,200 TC for Jammies in April = 2 * 200 = \$400 Hence TR of Jmmies for 4 months (January to April) = 4,500 + 1,200 = \$5,700 TC for Jammies for 4 months (January to April) = 1,800 + 400 = \$2,200 Marginal Revenue (MR) for Jammies = 5700 – 4500 = \$1,200 Marginal Cost (MC) for Jammies = 2200 – 1800 = \$400 The profit – maximization condition for the firm requires MR = MC. However, according to the workings, MR &gt; MC. Hence, the profits are NOT maximized for Jammies. EXTRA WORKING NOTES: In order to find the optimum price P, we have to use the formula: P = MR [1 – (1∕e)] where e = Price elasticity of demand (PED). Now e = Proportionate change in quantity ∕ Proportionate change in price = (200 – 300 / 300) ∕ (6 – 5) / 5 = - (1 / 3) ∕ (1 / 5) = - 5 ∕ 3 ≈ -2 Thus P = 1200 [1 – (1 / 2)] = (1200 * 0.5) = 600. Hence P = MR = MC = 600 would be the optimal condition for profit maximization.

TutorMe
Question:

Eagle Electric Co. of Hague has to evaluate two alternatives in order to replace a robotic welder. Machine X having a fixed cost of \$75,000 for the 1st year and a variable cost of \$16 along with a capacity of 18,000 units per year. On the other hand, Machine Y is slow as compared to Machine X and it has a speed of one-half of X's, however its fixed cost is only \$60,000 and the variable cost is higher i.e. \$20 per unit. Expected sale price is \$28 per unit. Compute the following on the basis of the given information- 1. )) For both the machines, what is the point of indifference (crossover point) in units? 2. )) What is the range of units for which Machine X will be preferred? 3. )) What is the range of units for which Machine Y will be preferred?

Inactive
Anil D.

1. )) Point of indifference in units for the two machines- At crossover point, the total cost of using either options (X or Y) are equal. Total cost of X=Total cost of Y Cost of X= Fixed cost (\$75,000) + [Variable cost (\$16)*Units produced (p)] =75,000+ 16p Cost of Y= Fixed cost (\$60,000) + [Variable cost (\$20)*Units produced (p)] = 60,000+ 20p We add all relevant costs of both options. The speed of production is not important here because we are considering the costs alone and the company may or not reach the capacity of the machines. The price of units is constant to both X and Y so including it on both sides have no effect to the equation. Cost of X= Cost of Y 75,000+ 16p= 60,000+20p 75,000-60,000= 20p- 16p 15,000= 4p P=3,750 this is the crossover point. If the company has the intention of producing 3,750 units, either option can be adopted. Crossover point= 3,750 units. ____________________________________________________________________ 2. )) Range of units of Preference for MACHINE X- Units above the crossover point, Machine X is preferable that is; 3,750 and above but, the machine has a capacity of 18,000 units. The range is; 3,750 to 18,000 units. ____________________________________________________________________ 3. )) Range of units of Preference for MACHINE Y- Units below the crossover point, machine Y is preferable that is 3,750 and below. This machine has speed half that of Y which equals to 9,000 units. The crossover point is below the capacity so it is not a consideration. The range is; 1 to 3,750 units.

## Contact tutor

Send a message explaining your
needs and Anil will reply soon.
Contact Anil

Start Lesson

## FAQs

What is a lesson?
A lesson is virtual lesson space on our platform where you and a tutor can communicate. You'll have the option to communicate using video/audio as well as text chat. You can also upload documents, edit papers in real time and use our cutting-edge virtual whiteboard.
How do I begin a lesson?
If the tutor is currently online, you can click the "Start Lesson" button above. If they are offline, you can always send them a message to schedule a lesson.
Who are TutorMe tutors?
Many of our tutors are current college students or recent graduates of top-tier universities like MIT, Harvard and USC. TutorMe has thousands of top-quality tutors available to work with you.
BEST IN CLASS SINCE 2015
TutorMe homepage