Regarding the annual report of Olympic Foods 2/2

Olympic Foods may have difficulty maximizing profits if the sales price of food decreases, even if they make progress to reduce costs. If this is the case, Olympic Foods will not be able to make their stockholders believe that they will return more dividends than before with maximized profits. Lastly, it is possible for Olympic Foods not to sell more foods with minimized costs. If the number of processors of frozen foods grows abruptly, then competition becomes severe. It is obvious that consumers get to have more options to choose when they buy frozen foods. In this situation, Olympic Foods will not be able to sell more food than before and thus will fail to maximize profits even though they decrease costs significantly. In conclusion, there are three reasons why this argument has some weak points. It is not only because it assumes that the same principle applies to the processing of food, but also because it ignores the sales price of food and the number of foods they sell.