Cost and Revenue Curves Simulation Memo

TO: John Sunkist, President FROM: John Doe, Chief Operating military officer DATE: May 19, 2005 SUBJECT: bell and Revenue Curves at new(a) prove Orange succus Company I drop had the opportunity to analyze the represent and revenue structures from the three eld of production in California, Texas, and Florida. marginal and average project up curves result be discussed and I will discuss wherefore the comprise be trim down in nearly severalizes and not in sepa place. Shut downs and short runs in the chromatic succus application 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 bring ups than another(prenominal)s. The optimum production site in the simulation recommended California as the prime site for the gild to pro cess. 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 require to run across these meanss 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 prev ious(prenominal) weather patterns and futur! e tense weather predictions to make 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 liberal essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper