Class Discussion... Continued (5 minutes)
Work in groups of four and discuss your decision by calculating the revenues below
- What would the annual total revenue for this business be?
- What would the annual total supplies or materials cost for this business be?
- What would the annual total labor cost for this business be?
- What would the annual total managerial cost for this business be?
- What would the annual total cost for this business be?
- What would the annual accounting profit for this business be?
- What would the annual economic profit for this business be?
- What would the annual normal profit for this business be?
Cost & Revenue Analysis
As alluded to above, a firm’s objectives would typically include business growth, quality product, job satisfaction, market share etc. But the firm’s underlying objective is profit maximization.
