Fundamentals of Managerial Economics Learning

Question: Discuss about the Fundamentals of Managerial Economics Learning. Answer: Introduction: In this report an adamantine study has been prepared on the cost and profit structure of Food master Pasta product line. Cost and profit structure of Food master Pasta product line reflects that there is decrease of $ .30 it the retail price of foods which has resulted into increase of 50% in overall turnover of the Food master Pasta product line. In addition to this, net profit of company will also increased by 90% due to less price and increase turnover. In the proposed plan it is observed that the cost per unit of Food master Pasta product line has increased by .84 % which shows that company had made more investment in its fixed assets which resulted into high level of increment in overall cost of capital. After observing the budgeted plan of Food master Pasta product line, it is observed that company has increased its overall fixed cost. In addition to this, it is evaluated that company has failed to increase its total turnover and decreased its total sales by 50%. Total cost of company has also increased by .84% which is not good indicator for the business functioning of organization. References Healy, P.M. Palepu, K.G. (2012).Business Analysis Valuation: Using Financial Statements. Cengage Learning. Hirschey, M. 2008.Fundamentals of Managerial Economics.9thed. Mason: Cengage Learning.