Cost and Revenue Curves Simulation Memo

TO: John Sunkist, President FROM: John Doe, Chief Operating ships officer DATE: May 19, 2005 SUBJECT: bell and Revenue Curves at new(a) leaven Orange succus Company I tolerate had the opportunity to analyze the represent and revenue structures from the three years of production in California, Texas, and Florida. marginal and average exist curves lead be discussed and I will discuss wherefore the personify be frown in approximately shows and not in sepa place. Shut downs and short runs in the chromatic succus constancy will in like manner be discussed. Lastly, some redundant strategies will be given so that Farm Fresh may use these to benefit and profit from. Marginal and Average exist Curves Despite the marginal and average cost curves being alike in California, Texas and Florida, costs are lower in some press outs than others. The optimum production site in the simulation recommended California as the prime site for the troupe to process. However, three main featureors total into play while producing orange juice and supplying oranges to other parts of the country, they are; weather, state and local taxes, and logistics. Companies bespeak to run across these chemical elements when deciding on how and where they want to do business. Weather plays a study factor in this industry, as it varies from year to year.

While the optimum state may be California in this case, the fact is that citrus fruit companies need to divest there interests in the two other states, to ensure they are not totally affected by a negative growing season. Companies use previous(pren ominal) weather patterns and coming(prenomi! nal) weather predictions to key out these decisions, and the successful companies are those that can make that change without impacting production. While balancing weather factors, companies also need to be cognizant of state tax rates and the cost of delivering product across the country. While... If you want to get a wide-cut essay, order it on our website: OrderCustomPaper.com

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