3.Fresh Foods wants to decrease the total cost of guava.

Identify three costs areas - other than price - that Fresh Foods to focus on to decrease total cost. Explain why you choose those cost areas.

Provide a detailed proposal for reducing costs in each of the areas you identified.

4.Suppliers are contractually obligated to sell Fresh Foods guava at a price of 14.5 PHP per pound. However, in order to maintain their farms, suppliers need USD to buy materials and other requirements on international markets. So instead of paying their suppliers in PHP, Fresh Foods pays their suppliers the dollar equivalent of 14.5 PHP. This means that, at the current exchange rate of 50 PHP to 1 USD, Fresh Foods pays its suppliers .29 USD. The Chief Procurement Officer at Fresh Foods wants to renegotiate its contract with suppliers to lock in the new forecast exchange rate of 60 PHP to 1 USD.

Describe any ethical concerns that Fresh Foods needs to consider before it decides to lock in the new forecast exchange rate.

Provide an alternative proposal that would address the ethical concerns that you described above.

Note: You do not have to work through the full ethics framework for this question. Just discuss ethical concerns and an alternative proposal.

5.Every total cost model is incomplete.

Describe three additional costs that Fresh Foods may want to consider to expand its total cost model.

Explain why you think the costs that you describe above would be relevant costs to consider.