Question
problem 16: A fruit plantation located in Brazil offers its customers the opportunity to pick the fruit from the trees themselves. The customers supply their
problem 16: A fruit plantation located in Brazil offers its customers the opportunity to pick the fruit from the trees themselves. The customers supply their own containers. The plantation does this to save on the cost of containers and the labor costs of picking and packaging the fruit. However, management is now concerned that the plantation is losing revenue because a larger than expected number of customers are eating the picked fruit and not paying for it. Management is now considering the option of hiring staff to pick and package the fruit. Which of the following would be relevant to managements decision to hire staff to pick and package the fruit? I. The additional cost of hiring the staff to pick and package the fruit. II. The costs of growing and maintaining the fruit trees. III. The lost revenue from customers eating the fruit and not paying for it. IV. The cost of the containers to be used for packaging the fruit. a) b) c) d) I, II and III only. I, III and IV only. II, II and IV only. All of the above are relevant.
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