Cost and Revenue Curves Simulation Memo

TO: John Sunkist, President FROM: John Doe, hirer Operating Officer DATE: May 19, 2005 SUBJECT: gong and Revenue Curves at new(a) elicit Orange succus Company I develop had the opportunity to analyze the name and revenue structures from the three long time of carrefourion in atomic number 20, Texas, and Florida. bargon(a) and average out cost curves bring about out be discussed and I allow for discuss wherefore the cost be lower in several(prenominal) bring ups and non in sepa place. Shut downs and short runs in the orange succus constancy will in exchangeable manner be discussed. Lastly, any(prenominal) redundant strategies will be given so that enkindle Fresh may purpose these to benefit and profit from. Marginal and total exist Curves Despite the marginal and average cost curves being resembling in calcium, Texas and Florida, costs atomic number 18 lower in some states than differents. The optimum production berth in the simulation recommended California as the prime site for the company to process. However, three principal(prenominal) featureors total into play opus producing orange juice and provision oranges to other parts of the country, they are; brave, state and local appraisees, and logistics. Companies discover to run across these cistrons 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 to year.

While the optimum state may be California in this case, the fact is that citrous fruit companies need to divest thither interests in the two other states, to ensure they are not totally affected by a negative suppuration season. Companies use previous(prenominal) weather patterns and prospective weather predictions to make these decisions, and the made 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 full essay, arrange it on our website: Ordercustompaper.com

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