1C)

The decision to stop selling the small box size could have significant implications for the
owners or members of the FP cooperative. With fewer box sizes available for sale, there
may be a decline in overall sales revenue for FP. This reduction in revenue could directly
impact the income and profitability of the cooperative members. Since fixed costs still need
to be allocated across the remaining box sizes, the loss of sales from the small boxes could
lead to a higher allocation of fixed costs to the remaining products, potentially reducing
profitability for the cooperative members.

The government of Country G promotes the importance of eating fresh fruit and vegetables,
and FP plays a role in fulfilling this objective by providing weekly boxes of seasonal produce
to customers. If FP decides to stop selling the small box size, it may lead to a reduction in
the variety and accessibility of fresh produce options available to consumers. This could
potentially contradict the government's efforts to encourage healthy eating habits within the
population. Additionally, if FP's decision results in lower overall sales or profitability, it could
lead to a decrease in tax revenue generated from the cooperative's operations or a lower
need for government subsidies that support the agricultural sector.

The decision to discontinue the small box size could have varying effects on the 26 workers
across the farms and distribution center. On one hand, there may be a decrease in workload
if there are fewer products to package and distribute. This could potentially lead to job
insecurity or reduced working hours for employees if the loss of sales results in downsizing
or restructuring within FP. On the other hand, if FP is able to maintain or increase sales of
the remaining box sizes, employees may experience stability or even increased workload to
meet the demand for larger boxes. However, any changes in workload or job security could
impact the income and living standards of the workers, thereby affecting their overall
well-being.

In conclusion, the decision to stop selling the small box size by FP Cooperative would have
multiple implications for various stakeholders involved. Owners and members of the
cooperative may face challenges with potential decreases in profitability due to the loss of
revenue from the discontinued product, exacerbated by the need to allocate fixed costs
across fewer box sizes. Simultaneously, the government's efforts to promote healthy eating
habits might be compromised as the availability of fresh produce options for consumers
diminishes. Moreover, employees and workers within FP may experience uncertainties
regarding job security and income stability, depending on how the decision impacts workload
and demand for larger box sizes.

d)

Firstly, seasonal demand directly impacts the selling costs and profitability of FP's produce
boxes. During peak seasons for certain fruits and vegetables, such as summer for berries or
tomatoes, the abundance of these items often leads to lower production costs and
subsequently reduced selling prices. Conversely, off-peak seasons may witness higher
production costs due to scarcity or the need for specialized cultivation methods, resulting in
increased selling prices. As such, aligning FP's product offerings with seasonal demand is
crucial for maintaining competitive pricing and maximizing profitability.

Secondly, the amount of government grants provided to FP's member farms plays a role in
shaping the supply dynamics of its produce boxes. These grants contribute to the financial
viability of the farms, offsetting operational costs and potentially influencing production
decisions. However, the impact of government grants on FP's supply is secondary to
seasonal demand. While grants provide essential support to farming operations, they do not
directly address fluctuations in consumer preferences or the availability of seasonal produce,
which are fundamental drivers of demand.

In conclusion, while factors such as selling costs and government grants contribute to FP's
supply dynamics, seasonal demand stands out as the most critical determinant. By
recognizing and responding to shifts in consumer preferences and the availability of
seasonal produce, FP can optimize its product offerings, maximize profitability, and maintain
a strong foothold in the market. Therefore, prioritizing seasonal demand considerations is
essential for FP to sustainably meet customer needs and thrive in the agricultural sector.