Two (2) key factors in determining the cost-effectiveness and potential profitability of bringing any product or service to market are supply and demand and price determination. After reviewing your Required Readings, address the following issues.

1)What is learned from a well-formulated supply and demand curve analysis and how does this information help determine optimum production rates for maximum profitability?

2)What is the correlation between employee benefits and return on investment assets, return on equity, and return on sales?

c. How can the inability to compete profitably on price be overcome?

What is learned from a well-formulated supply and demand curve analysis and how does this information help determine optimum production rates for maximum profitability?

Profit maximization weather in the short run or in the long run is a process which a firm mainly uses to identify price and its output level which after that returns highest profit when manufacturing goods or the services.

Supply and demand curve provides the organization a equilibrium price and quantity. This means the curve determines. equilibrium quantity on a certain price which to be supplied by manufactures that then equals with the quantity which is demanded by the end consumers on that certain price. Quantity of any commodity is clearly dependent on the price of that, there could be some others reasons such a income of the people which affect the quantity demanded. So, this is how in supply and demand curve analysis a quantity and price of product is determined.

What is the correlation between employee benefits and return on investment assets, return on equity, and return on sales?

There is correlation between the employees benefits, and return on investment assets, as return on investment assets means how much return a company is generating from its invested assets, which actually is performance of company employees. This is linked to employees benefits, if there will be more return in assets, there will be more rewards for employees. Return on equity is about how much profit a company is generating from its equity which is the difference between company assets and liabilities. Return on sales, is a measure which is about which measures effectiveness. It reveals to you the amount of every dollar of deals income stays after you've paid the working expenses related with creating that income. All these are performance related measures for which company employees are accountable. Employee benefits are linked to the performance of these ratios.

How can the inability to compete profitably on price be overcome?

Product cost is about materiel, labor and factory overhead. if a company is unable to compete in a market on the basis of price is means company is producing on higher cost as compares to other competitors. There is need to reduce all manufacturing costs. There are different ways where a company can reduce its production costs. One of the ways is by producing a higher quantity where by doing this, fixed costs stays same, which results in lower final per unit cost. Direct materials costs need to be reduced by finding lower cost supplier from market or by purchasing bigger quantity materials from the same suppliers.

Step-by-step explanation

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