Question

Fresh Fruit wants to decrease the total cost of pineapple juice. - Identify two costs areas - other than price - that Fresh Fruit to focus on to decrease total cost. Explain why you choose those cost areas. Fresh Fruit Start Fresh Fruit Start 2

Answer 1

Fresh Fruit can reduce total cost of pineapple juice by focusing on supply chain efficiency to minimize logistical expenses and by optimizing production methods to decrease variable costs.

Step-by-step explanation:

To decrease the total cost of pineapple juice, Fresh Fruit could focus on areas such as supply chain efficiency and production methods. By optimizing the supply chain, the company can minimize transportation and storage costs, ensure the timely delivery of pineapples, and reduce wastage. For production methods, implementing cost-effective and efficient production techniques can lower the variable costs associated with transforming pineapples into juice. Both areas can lead to significant savings and a decrease in the total cost without affecting the price of the juice.