Businesses often decide between using automation and labor in production. An automotive environment may have high fixed costs and low variable costs; for example, and an industry that utilizes manual labor for production will have low fixed costs and high variable costs. How would you describe the balance between the costs of automation, or fixed costs and the costs of labor, or variable costs? How has the Internet changed the balance between automation and labor?© BrainMass Inc. brainmass.com October 25, 2018, 3:55 am ad1c9bdddf
If managers can show the cost effectiveness of automation they can then proceed forward. Automation does help to eliminate recruiting, training, workers' compensation claims, and medical benefits. Of course, how long the company is willing to wait on the return on investment (ROI) for automation depends on the organizations financial situation. ...
This solution solves the problem in choosing between variable and fixed costs.
Cost types are examined.
1. What marginal costs do Universities incur by offering more than one of the same classes? What marginal revenues do Universities earn from each additional class? How would you expect this marginal analysis to affect the volume of classes the Universities offers? Does Universities maximize profits?
2. How would you describe the balance between the costs of automation, or fixed costs, and the costs of labor, or variable costs? How has technology changed the balance between automation and labor? What type of industry benefits the most from technological innovation?
3. Choose an organization that has a high fixed cost and low variable cost balance to run its operations. Discuss the balance of fixed and variable costs for the organization. How can the organization use technology to change this balance for an advantage?
4. What opportunity costs do you confront by enrolling in a MBA program? Does your organization or an organization with which you are familiar consider opportunity costs when evaluating strategic opportunities? For your organization, are opportunity costs fixed costs, variable costs, both, or neither?View Full Posting Details