Minimizing Cost

Question 1

Managing Fixed and Variable Costs for Organization

Choose a publicly-held organizations (TESLA). One organization must have high fixed costs and low variable costs, and the other organization must have low fixed costs and high variable costs.

Note: A publicly-held organization is a private-sector firm that is owned by stock holders. Companies with high fixed costs include manufacturing companies, such as automobile manufactures, whereas service companies, such as accounting firms, might have low fixed costs.

Create a minimum 8-slide Microsoft® PowerPoint® presentation, including detailed speaker notes, analyzing the methods of managing cost depending on the cost construction.

• Analyze your companies cost construction. Does the company have high fixed costs or low fixed costs? Do the compay have high variable costs or low variable costs? What evidence presents itself to support your findings?
• In Excel®, chart the relationship between total cost and the number of units produced (output) for the company (TESLA) . Plot two lines on the graph – one line for each company you analyzed. Copy your graph from Excel® and paste it into your PowerPoint® presentation.
• Analyze currently used methods to minimize costs for the companies and provide recommendations how to improve the process of minimizing costs based on the available information for the industries in which the companies operate. Note: Companies are categorized by the industries they operate in. For example, Wal-Mart is a company operating within the retail trade industry.

Cite a minimum of three peer-reviewed sources.

Format the assignment consistent with APA guidelines.

Question 2

Analyze and calculate the following scenarios in 525 words, including which one would you choose and why, and which financing option is best for your business:

• Investor #1 decided to loan you the $300,000, paying all of the interest (8% per year) and principal in one lump sum at the end of 5 years.
• Investor #2 offers you the $300,000, paying interest at the rate of 8% per year for 4 years and then a final payment of interest and principal at the end of the 5th year.