Business Proposal Eco 561

Running head: Business Proposal

Business Proposal:   Clear Hear
Shalonda Kizer
Joseph Broberg

To:   Clear Hear Employees
From:   Corporate Sales Office
Date:   02/22/2010
Subject:   Increasing Revenue
CC:   Board of directors

This business proposal is designed to provide recommendations to Clear Hear for increasing revenue for the company, achieve ideal production levels, determine how fixed and variable cots should be adjusted to maximize profits, and identify methods to reduce cost.   By the end of this proposal Clear Hear will have a guide to follow to make these recommendations successful to allow for a more productive company.
Accomplishing the key objectives in this proposal are going to require a few minor changes in production.   Although changes are being made Clear Hear will continue to follow the key values of Clear Hear.   Clear Hear will continue to keep the employees working, provide all of the customers with a quality product on time, and that will meet or exceed the customers expectations, as well as treat our business partners the same as we would like to be treated(University of Phoenix, 2010).
In order to begin to increase the revenue of Clear Hear we must begin by finding ways to minimize the expenses or cost that exist.   By minimizing expenses it is likely that profits or revenues will increase.   Fixed costs are those costs that in total do not vary with changes in output(McConnell, C.R., 2009 p.159).   An example of some of the companies fixed costs could include the rent payment on the factory and the factory’s insurance premiums.   Variable costs are those cost that change with the level of output(McConnell, C.R.,2009 p.161).   Since variable costs can change we will start by minimizing or eliminating some of these costs.   Some ways we can minimize or eliminate these costs are to regulate the utilities of the company.   Other examples of the companies variable costs can include labor costs, cost of...