Marv and Vicki Own and Operate a Vegetable Canning Plant

question 123

Essay

Marv and Vicki own and operate a vegetable canning plant. In recent years, their business has grown tremendously and, at any point in time, they may have 30 to 35 different vegetables being processed. Also, during the peak summer months there are several thousand bushels of vegetables in some stage of processing at any one time. With the company's growth during the past few years, the owners decided to employ an accountant to provide cost estimations on each vegetable category and prepare monthly financial statements. Although the accountant is doing exactly as instructed, Marv and Vicki are confused about the monthly operating costs. Although they process an average of 50,000 canned units a month, the monthly production report fluctuates wildly.
Required:
Explain how the production report can fluctuate wildly if they process a constant amount of vegetables each month.

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Definitions:

Oceanic Trench

A deep, narrow depression in the ocean floor, usually occurring at subduction zones where one tectonic plate is being forced under another.

Island Chain

A series of islands formed close to each other, often as a result of volcanic activity.

Mid-Ocean Ridge

An underwater mountain range formed by plate tectonics, where new oceanic crust is created.

Transform Fault

A strike-slip fault that accommodates the horizontal movement of one tectonic plate past another.