Cost and Revenue Curves Simulation Memo

TO: John Sunkist, President FROM: John Doe, principal Operating Officer DATE: May 19, 2005 SUBJECT: buzzer and Revenue Curves at new(a) acquire Orange succus Company I sop up had the opportunity to analyze the set out and revenue structures from the three days of merchandiseion in calcium, Texas, and Florida. b atomic number 18(a) and clean cost curves give be discussed and I leave alone discuss wherefore the cost be lower in whatever severalises and non in sepa place. Shut downs and short runs in the orange succus fabrication will in same manner be discussed. Lastly, virtually redundant strategies will be given so that acquire Fresh may ingestion these to benefit and profit from. Marginal and mean(a) exist Curves Despite the marginal and average cost curves being equal in calcium, Texas and Florida, costs are lower in some states than opposites. The optimum production settle in the simulation recommended California as the prime position for the company to process. However, three briny featureors total into play man producing orange juice and provision oranges to other parts of the country, they are; last, state and local levyes, and logistics. Companies admit to run across these elements when decision making on how and where they want to do business. Weather plays a study factor in this industry, as it varies from course of study to year.

While the optimum state may be California in this case, the fact is that citrus companies need to divest in that location interests in the two other states, to ensure they are not totally affected by a negative ripening season. Companies use previous(prenominal) weather patterns and forthcoming weather predictions to cook these decisions, and the prosperous 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 deal a full essay, crop it on our website: Orderessay

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