Food Production and Supply Chain Cost Management

Data:

• Monthly Fixed Costs: $7,000,000
• Variable Costs per Unit: $1
• Units Produced: 8,000,000
• Supply Chain Costs per Unit: $0.30

Requirements:

1. Calculate the total monthly costs, including supply chain costs.
2. Determine the cost per unit.
3. Analyze the impact of producing 1,500,000 additional units on total and per-unit costs.
4. Discuss the importance of managing supply chain costs.
5. Recommend strategies for optimizing food production and supply chain efficiency.
6. Evaluate the potential benefits of implementing sustainable supply chain practices.
7. Assess the impact of cost control measures on the company's operational efficiency and brand reputation.