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Arkansas Egg Company: At the conclusion of the CCF brands contract, Cox has two options for the 130,000 birds: 1) he can retain the birds
Arkansas Egg Company: At the conclusion of the CCF brands contract, Cox has two options for the 130,000 birds: 1) he can retain the birds until they are euthanized in week 78 (his current business practice), or 2) he can euthanize the birds immediately. Assume the market price of eggs will be $0.30/dozen if the hens are retained.
If Cox is able to negotiate a six month (26 weeks) extension of his contract with CCF Brands, what price would you recommend as the floor Cox would consider in the negotiation?
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