Food manufacturing facilities are high profit businesses all over the country. Each region of the country has a specialty; the north has cheese and dairy, the south has fruits, and the center region has meats. Living in the Midwest, the most common food facilities produce, meats, soy and pizza toppings, the best examples are Tyson and Hormel Foods. That is what my business does we manufacture the best kind of food; brownies. Brownies sell all over the country in grocery stores and markets as a quick dessert for those who do not excel at baking, or for those who do not have the time to make them. Food businesses are high profit because no matter how advanced technology gets we still need the ingredients to make the food and the people/businesses to buy the food.
Analysis
“Differential Analysis is analyzing the difference in revenues and costs among alternative courses of action” (Heisinger & Hoyle, 2013, chap. 7.1). The differential costs are the costs that change when deciding between two or more relevant options for the business (d. miller, lecture notes, 10-13-16). Two relevant factors for the brownie business are dropping low-quantity buying customers and keeping those …show more content…
The largest factor being that Haven only has one store that sells these brownies, whereas, Hy-Vee and Walmart have hundreds or thousands. My analysis demonstrated that although my business was not initially losing money they were not making a profit either (Option 1 Profit). When determining that keeping this smaller customer would contribute to the company losing money in the long run it was easy to decide to drop Haven Foodliner. Money is saved by not forcing another changeover, and potentially increasing the amount sold to the larger customers by advertising that your business can run at a higher capacity for their product. Continuing to make product for the smaller customer does not make
Analysis
“Differential Analysis is analyzing the difference in revenues and costs among alternative courses of action” (Heisinger & Hoyle, 2013, chap. 7.1). The differential costs are the costs that change when deciding between two or more relevant options for the business (d. miller, lecture notes, 10-13-16). Two relevant factors for the brownie business are dropping low-quantity buying customers and keeping those …show more content…
The largest factor being that Haven only has one store that sells these brownies, whereas, Hy-Vee and Walmart have hundreds or thousands. My analysis demonstrated that although my business was not initially losing money they were not making a profit either (Option 1 Profit). When determining that keeping this smaller customer would contribute to the company losing money in the long run it was easy to decide to drop Haven Foodliner. Money is saved by not forcing another changeover, and potentially increasing the amount sold to the larger customers by advertising that your business can run at a higher capacity for their product. Continuing to make product for the smaller customer does not make