Business Administration And Management Case Study

A business is an organizational entity that exchanges goods and services for profit; it participates in various activities such as methodical, industrial, or commercial in order to execute the company’s objective. Studying business administration and management helps gain an understanding of how different organizations operate and teaches you how to efficiently utilize your analytical, critical, and problem-solving skills. I identify with this area of study because it closely relates to my major, information systems management, in which you learn the affiliation between technology and business. I have come across many individuals that have or are currently majoring in business administration and management and assisted a few members of the

The profit function is the difference between the revenue function R(x) and the cost function C(x); thus, P(x)=R(x)-C(x). The total revenue R(x) is dependent on the result of the total cost and it exhibits the total sales of a company based on a given quantity of deliverables. Within the total revenue function, the price per unit measures a company’s cost to create one unit of a good or service. It also helps a business price a product while keeping in mind how much they will profit from it; furthermore, the variable x displays the number of units in the function. Calculating the total revenue exhibits the relationship between the selling price and the number of units sold; it helps a company compare their total earnings with previous years in order to figure out how their goods and services can improve. Consequently, these various factors can help understand and increase the company’s outcome for total profit. The purpose of total profit for a company is that it gives them the ability to reach their desired outcome and if they do not exceed or meet minimum requirements, it gives management of the company to analyze contributing details more closely. A scenario that applies to the profit function is if the cost function is given at C(x)=7000+2x which shows the cost of production for x number of headphone sets and the revenue function is given at R(x)=10x-0.001x^2 which shows the amount of money received by the company producing and selling x headphone sets, then evaluate how would the profit be calculated. Using the profit function, the revenue function would be subtracted from the cost