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Posted on Oct 15, 2014 11:41 AM

In an annual report sent to stockholders by the olympic food processing company, the company mentions about the costs of processing goes down as the organisations learned how to do things better and more efficiently.
The company mentions the cost in printing color films like the cost fell from 5 cents in 1970 to 20 cents in 1984. The company applies the same principle for processing of frozen foods.The comapny is expecting that the costs will be minimised
and profits will be get maximised because of the arrival of their 25th birthday celebration.
In this argument, there are many flaws that the company might have ignored.
First flaw in this argument can be the Time Difference.As the time passes the company had assumed many factors to be constant like the technology remains constant,the machinery is not obsolete and the number of employees remains the same.As the time progresses,these factors might not be constant for example,Technology needs to be upgraded, machinery can be depreciated and the number of employees can be decreased or increased.
So the time lag can be a flaw to this argument.
Second possible flaw can be the comparison made by the company. The company applied the same principle to the processing of foods as it had mentioned in color film processing. Factors considered in color film processing mighht not be suitable for processing of foods. In color film processing, the ink can be stored for many years but the food cannot be stored or preserved for a longer time as these are perishable goods and can become useless after a long time. Cost of color films might not be suitable for the cost of processing of food. In color film
processing, the raw materials might be readily available in the market but for food processing,it might be difficult.
Another flaw can be the company assumed that the costs of processing will remain constant over the time period. But the fact is that the costs will be incresed over the time period as the tchnology need to be upgraded and the costs for training of new employees can be increased. Machinery gets obsolete over the time period so repairing of machines or investing in new machines will increase the costs of processing of foods.
Thus the costs will be increased which will eventually decrease the profits.
Had the company considered these factors then the argument might be more convincing and logical. So conclusion can be made that the argument is incorrect and less factful unless the company considers these flaws and risks.

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Dear Suhail, It is a very good attempt. The shift in tenses is not used correctly. Work on it. Other thing is that there are some careless spelling errors here and there. Avoid them. The whole response sounds repetitive. See how you can avoid such redundancy. All the best.