Business Report

Mercer Farms, Inc. As a junior analyst for Mercer Farms (Mercer), you were looking forward to an exciting career. You imagined assignments evaluating new technologies in far-off, exotic locations. As your bus traveled through the heartland of U.S. cornfields, you wondered about your job choice. Your background research, however, has changed your first impression of being assigned to an agricultural consulting engagement. You have discovered that farming is no longer a small potatoes operation. Perhaps, given the changes in the size of farming businesses in the U.S., agribusiness might be a lucrative consulting specialty. Mercer Farms Inc. (hereinafter referred to as Mercer Farms) is an old, family-owned business that has acquired various smaller farms over the years and has managed to maintain a profitable business enterprise through economies of scale. So far, the firm has specialized in the production of Grade AA yellow corn. Michael Bell, Operations Manager for Mercer Farms, has proposed replacing the current production of PA yellow corn with a new genetically modified (GM) variety of yellow corn (see Exhibit 1). Allen Mercer, CEO of Mercer Farms, engaged Mercer to evaluate Mr. Bell’s proposal and make recommendations. The firm’s research staff has pulled together information regarding the new product (see Exhibit 2) and the past two year’s income statements for Mercer Farms (see Exhibit 3). Your team has a few days to review the materials and prepare its preliminary analysis before meeting with the client. Required Prepare a business report to the client setting forth your team’s analysis and recommendations. In the report, address any risks associated with the recommendations. The team will also deliver its analysis and recommendations in a formal, personal presentation to the client. You may wish to review microeconomics concepts 1, 2, and 4; management accounting concept 8, and statistics concept 8.

 

 

 

 

 

 

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