Thomas Money Service Business Analysis Essay example

1303 Words Apr 23rd, 2011 6 Pages
Thomas Money Service Incorporated Business Analysis
Leslie (Scott) McCrory
ECO/561 Economics
March 14, 2011
Facilitator David Francom
Thomas Money Service Incorporated Business Analysis
Executive Summary

Thomas Money Service Incorporated is a consumer finance company, and conducted business successfully for 71 years. The organizations primary financing services pertained to commercial real estate and business loans. In 1946, the company decided to incorporate a subsidiary business to manufacture forestry and construction equipment. The new company, Future Growth Incorporated, became the Thomas Money Service’s sole brand of merchandise. In 1951, the newfound company purchased a suitable manufacturing facility to produce its
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To obtain the ideal production, Thomas Money Service must integrate technology upgrades to manufacturing procedures, and create increased efficiency in determining elasticity of demand.
Fixed and Variable Costs for Profit Maximization

Thomas Money Services conducts business in a competitive market and has little market power. The market characteristics are • Businesses have little effect on price • Goods are similar among competitors and demand is extremely elastic • Businesses can easily enter and exit the market with minimal barriers
To calculate profit maximization one may first calculate profit, which is Profit = Total Revenue – Total Costs. The following graph illustrates the organization’s steady growth in profitable business, but declining profit maximization:
|Total Revenue |Total Cost |Profit |Profit Maximization |
|$2,600.00 |$1,050.00
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