Essay Asher Farms Inc.

If the company decided to sell the new product at price of D.Cr. 8.20, that means the full fixed expense of 1.20 is covered and the company will make high profit. However, the selling price of D.Cr. 8.20 is very high and under this price the company will sell the new product at a lower volume than what the company planned sale volume in the budget and that will affect the company in the market as a strong competitor in the food manufacturing. According to the case, the company sales volume drop to 30 tons when the product was sold at the price of D.Cr. 8.2. Thus, my recommendation are as follows:

Risk of increasing labor costs faster than expected which could directly impact the pricing of the products

This is the case of huge fixed cost involved in production, so the argument goes like this, if they will stop manufacturing, there will be a huge loss for them including the total fixed cost and sunk cost, which cannot be recovered.

In the case of Mendel Paper Company which produces four basic paper products lines at one of its plants: computer paper, napkins, place mats, and poster board. Although the plant superintendent, Marlene Herbert is pleases with increased sales he is also concerned about the costs. The superintendent is concerned with the high fixed cost of production, the increases in fixed overhead and even variable overhead. He feels that the production of place mat should be discontinued. His reason for the discontinuation is that the special printing is driving up the variable overhead to the point where the company may not find it profitable to continue with the line. After reviewing the future predictions of the

The air around us is constantly getting warmer, in fact 2001-2010 was the warmest decade ever recorded. According to the article,"Signs of Climate Change", the average tempature on Earth is predicted to rise between 4-12 degrees by 2100. The major rise of temperature is later causing droughts to happen more and more. In present day the droughts are already starting to get more powerful, last longer, and happen more often. In 2100 they are way worse than present day and they are continuing to get worse. With the combination of really high temperatures and the drought we are not longer able to grow crops such as corn, cabbage, lettuce, and watermelon here in 2100.

The main problem for the company is to facing the high scrap rate and quality of the product. Another reason is the machine breakdowns, every time the machines stopped and restarted will make scraps out from the machines. Last reason is to produce new product will cause high

can interfere with the economy’s ability to produce or it can reduce demand, as it

owners have found that demand for their product has outstripped their ability to supply it. They

1. Political: “issues affecting our international vendors could materially adversely affect our business and financial performance.”(Page 8.)

The other option of reducing price or distributor's margin (to match GAFCEL's offering) may have a detrimental impact on the bottom line.

Perhaps Placido would have to find other suppliers that will meet the demands for a low cost, that would be an advantage for the company.

Firstly, it is strategically beneficial for the company to continue to produce products A, C, and D. However, you should discontinue production of product B, as it is unprofitable and is losing the company money. Product B has been losing the company $2,307 per reel. If the company deems it is essential to keep producing product B in order to retain their customer base, we recommend changing the production schedule. For example, during times of lower demand, you can produce products such as B that do not make as much money, but you will still retain your customers’ business and satisfy their needs. During times of higher demand, by discontinuing the production of product B, the company will be able to produce the more profitable products such as A, C, and D.

regulation, cost and availability of raw materials, and cost of labor. A business may have the best idea for

The company is under critical observation on their supplier’s welfare and working conditions that has raised issue on upholding its branding (Yildiz, 2014,pg 580)

It’s only the effectively managed, high performing and better performance farms in the current society have been accorded their status.