writing+assignment

=The academic report:- = ​ Maximizing Profit  Maximizing profit means to increase the revenue or the benefit of your production.As we know, when a producer want to produce any product ,he will look for achieving the maximum profit he can.So producers should be carefull about the way they use to maximize them productions profit ,to do this they should determine the **break-even point** ;it is the point in which the cost of the product equalls it's revenue,to know when we reach this point we can use the following theory:( Q = Fc/(P _ Vc) ).Since Q is the quantity of the production when we reach the **B.-E.P.**, **Fc** is the fixed cost , **P** the price/unit , **Vc** is the variable cost.But,when we achieve this point we will not maximize the profit, so to do this we can follow one or both of the following ways:- 1- we can decrease the variable cost of the product. 2- we can increase the price of the product. depending on the market invironment and not temporarely.In this way we can make our decision depending on a study and not temporarely ,as aresult,we will achieve our objective from the production process,which is maximizing profit.

___

====** The business report:- ** ((( Break even point report to be presented to the production manager. Mr. ,,, at Big Star Co. Due Feb 7th ))).... ====

Dear Mr Maher Arafat,
After studying the production problem of Big Star Company, I conclude that if we have a fixed cost of $5000, a variable cost of $10, a price of $20/unit, and a quantity of production at break even point (point in which the total cost = the total revenue) = fixed cost / (price _ variable cost) =500$ and the profit will be = quantity * (price - variable cost) - fixed cost = 0$, so in our case we should decrease the variable cost to $9 inorder to increase the profit to 500 and this is the optimal solution for our production problem, because we cant increase the price of production since the price in the other organizations will be less than our, and that may lead us to production fail, so we should keep the price as it as, and try to decrease the variable cost to 9 and this will be in behaif the company.

with all regards to you. donya khdairi.