Profit Maximizing Quantity and Price Presentation

Competency

Understand economic terminology and economic definitions pertaining to decisions made by managers.

Course Scenario

Oil Company X is a large oil refinery which has been expanding and  taking on new investment projects. Recently, they have considered  building a pipeline that stretches across the United States, from Canada  to New Orleans. As an alternate investment, they are considering  increasing production at existing facilities.

In order to compare these investment opportunities, the head of the  Cost Analysis Department has tasked you with finding the profit  maximizing quantity and price if production continues at existing  facilities. You will then present this to the head of the department in a  meeting, along with supporting documentation such as cost curves, data  tables, and equations.

Instructions

As a Cost Analyst at your firm, you are being asked to evaluate the  profit maximizing quantity and price for your product to submit to your  manager. Assume that your firm is a monopoly supplier of oil in your  region, due to extensive trade restrictions.

Another team member in the Cost Analysis Department has compiled the necessary data in the linked spreadsheet.  You will have to complete the missing columns for ATC, AVC, and MC. If  the company is incurring a profit, include the amount of the profit  earned when quantity and price are maximized. If your company is  incurring a loss, prove whether it should shut down or continue  operating at a loss. Use graphs and equations to support your argument.

You will create a short screen recording with narration arguing your  case to your manager. Create a PowerPoint presentation to support your  recommendation which can serve as the visuals for your recorded screen  capture.

There are many free screen recording software/Webware options  available (such as Screencast-O-Matic) to use in presenting your  PowerPoint. Make sure that both your voiced narration and the PowerPoint  slides are captured during your screen recording.

Be sure to include a cohesive introduction and conclusion of your  findings. Your body slides should include any relevant curves created in  Excel from the data spreadsheet.

After recording, paste a link to the recording on the last slide of  the PowerPoint presentation. Attach the PowerPoint presentation as well  as the Excel spreadsheet showing how you created the curves and obtained  the profit maximizing quantity and price, as well as the corresponding  profit or loss.

Format your PowerPoint to include a title page, introduction, body  slides, conclusion, and references. Remember to cite your sources using  correct APA format, and also use correct grammar, spelling, and  formatting.

*spreadsheet is listed on attachments*

*recording memo should be on a separate page and I will do the recording*