Cost and Revenue Curves Simulation Memo

TO: John Sunkist, President
FROM: John Doe, Chief Operating Officer
DATE: May 19, 2005
SUBJECT: Cost and Revenue Curves at Fresh Farm Orange Juice Company
I have had the opportunity to analyze the cost and revenue structures from the three years of production in California, Texas, and Florida. Marginal and average cost curves will be discussed and I will discuss why the costs are lower in some states and not in others. Shut downs and short runs in the orange juice industry will also be discussed. …