Overview
i want the answers for only task 1. I will upload all the requirements. Task 1: Varying cost structure or patterns
If you’ve ever flown on an airplane, there’s a good chance you know Boeing. The Boeing Company generates around $90 billion each year from selling thousands of airplanes to commercial and military customers around the world. It employs around 200,000 people, and it’s indirectly responsible for more than a million jobs through its suppliers, contractors, regulators, and others. Its main assembly line in Everett, WA, is housed in the largest building in the world, a colossal facility that covers nearly a half-trillion cubic feet. Boeing is, simply put, a massive enterprise.And yet, Boeing’s managers know the exact cost of everything the company uses to produce its airplanes: every propeller, flap, seat belt, welder, computer programmer, and so forth. Moreover, they know how those costs would change if they produced more airplanes or fewer. They also know the price at which they sold each plane and the profit the company made on each sale. Boeing’s executives expect their managers to know this information, in real time, if the company is to remain profitable.
The pattern of costs varies among firms. Some businesses havehigh fixed costs, but lowvariable costs and vice versa. Consider, above case or any other business of your choice. Based on thatidentify their costs, discuss in detail all types of costs that the business can incur. Elaborate your answer using charts & tables. You are required to explain the concept of all types of cost and then apply it to your chosen business. (10 marks) (word limit 600-1000)