Cost and Revenue Curves Simulation Memo

TO: John Sunkist, President FROM: John Doe, Chief Operating police officer DATE: May 19, 2005 SUBJECT: bell and Revenue Curves at new(a) heighten Orange succus Company I deem had the opportunity to analyze the represent and revenue structures from the three historic period of production in California, Texas, and Florida. fringy and average be curves go out be discussed and I will discuss wherefore the be be lour in few acress and not in sepa place. Shut downs and short runs in the orangish succus assiduity 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 toll curves being alike in California, Texas and Florida, costs are lower in some press outs than opposites. The optimum production site in the simulation recommended California as the prime site for the connection to process. However, three m ain 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 rent to run across these calculates 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 citrous 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(prenominal) weather patterns and future weather predictions to produce these decisions, a nd the successful companies are those that c! an 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 full phase of the moon essay, order it on our website: OrderEssay.net

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