Acres Home-Made Pies

Category: Accounting, Ethics
Last Updated: 18 May 2021
Pages: 1 Views: 279

The company produced specialty pies and sells them in local supermarkets and select family restaurants. In each of the first six months, Shelley and three part-time employees sold 2,000 pies for $4. 50 each, netting $1. 50 profit per pie. The pies were quite successful and Shelley could not keep up with demand. The company's success results from a quality product and productive employees who are motivated by incentives and who enjoy being part of a successful new business.

To meet demand, Shelley expanded operations, borrowing money and increasing staff to four full-time employees. Production and sales increased to 8,000 pies per month, and profits soared to $12,000 per month. However, demand for Mrs. Acres Homemade Pies continues to accelerate beyond what Shelley can supply. She has several options.

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  • maintain current production levels and raise prices;
  • expand the facility and staff while maintaining the current price;
  • contract the production of the pies to a national restaurant chain, giving Shelley a percentage of refits with minimal involvement.

Discussion questions:  Denned supply, mean, Ana equilibrium price, explain Ana demonstrate ten relationship between supply and demand for Mrs. Acres Homemade Pies.  What challenges does Shelley face as she considers the three options?  What would you do in Shelley position?

Other majors have options to write about ethics in business in general. The write up reports should be between 2-3 page-report (approximately two double-spaced pages). The objective of your assignment is to explore your thoughts and understanding about ethics, identify and analyze ethical issues in business, as described in Chapter 2. In addition to chapter 2 other resources may be helpful in getting you started (academic Journals, University of Share electronic library).

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Acres Home-Made Pies. (2018, Apr 30). Retrieved from

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