Written Assignment Unit 5( BUS 1103) University Of The People.
Principles of Production, Revenue, Cost, and Productivity.
The act of producing goods or services is referred to as production. This would include farm produce production, harvesting, and packaging for GreenHarvest Farms.
Cost
Cost includes all of the expenses related to the production process, such as labor, materials, and overhead. The expenses of GreenHarvest Farms would include labor fees, equipment upkeep, seeds, and fertilizers.
Revenue
Revenue is the money received from the sale of products or services. The sale of farm food to customers or businesses is the source of income for GreenHarvest Farms.
Productivity
Productivity is a metric used to quantify output per unit of input and assess the efficiency of production. This could be the quantity of produce harvested per acre or per labor hour for GreenHarvest Farms. The effectiveness and financial success of GreenHarvest Farms is influenced by each of these elements. High productivity and effective production can reduce expenses and boost output, and revenue is closely related to the farm's ability to make money.…show more content… However, I can supply these formulas.
Average Cost (AC) = Total Cost / Quantity (Q). Marginal Cost (MC) = Change in Total Cost / Change in Quantity (Q). Average Revenue (AR) is calculated by dividing total revenue by quantity (Q). Marginal Revenue (MR) is calculated by dividing the change in total revenue by the change in quantity. Profit or loss = total revenue less total cost.
Analyzing these indicators helps to establish profitability at each production level and guides production
