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 Assignment Worksheet. Your assignment is to help Tracy figure out the optimal number of workers and the number of items that should be sold daily. Letâ€™s keep the concession stand open! Access the Unit V Assignment Worksheet in Blackboard. Complete the following in the Unit V Assignment Worksheet.
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.
Answer the questions after the table as a guide to use when writing your assignment.
Write an assignment of at least 750 words.
- Briefly describe the calculations you made when filling in the table data.
- 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.
- 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.
Include a copy of the completed table and your answers to the questions in the worksheet after your assignment (e.g., on the page following your reference page, if you have one). The word count will not include the information in the table. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations. All references and citations used must be in APA Style.
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