Sajjad1994 Hi, can you evaluate the below answer.
The passage mentions the example of a Color film processing unit to present the argument "The cost of processing is inversely proportion to time. Over time, organizations become efficient with improvement in processing and low processing costs". Author extends this example to another industry, which is food processing and give example of Olymic Foods. Author argues that since Olymic Foods will complete its 25 years of establishment, it is expected that its cost will be minimized, and profits will be maximized. The conclusion of the argument relies on assumptions for which there is no clear evidence. Hence, the argument is unconvincing and has several flaws.
First, the argument readily assumes that the model which is successful in one industry will also replicate its success in another industry. The two industry processes, author relates a color film processing and processing of foods, may not be directly related to each other. The argument could have been much clear if it is explicitly stated that the two industries are directly related, so that an equivalence between the two can be established.
Second, the argument claims that the reducing cost of processing will invariably maximize the profits. Author does not account the fact that profit also depends on the sales of the business. If the sales have gone down, then the business may not maximize the profits despite the reduction in the costs. If the argument has provided that there is no effect on the sales of the business or the sale of the business also increased over time, then the argument that minimizing cost will maximize the profits can be considered.
Finally, the author assumed in its argument that the costs associated with a business is only cost of processing. However, there are other costs such as Employee Salary, which also increases over time; Selling and General Expenditures are also not considered, which also increases over time. Author established the argument on the basis of certain fixed parameters related to costs and has not considered the overall business scenarios of both the industries.
In conclusion, the argument is flawed for the above-mentioned reasons and is therefore unconvincing. It could be considerably strengthened if the author clearly mentions all the related facts about both the businesses and the parameters associated with costs in both of the industries.
In order to assess the merit of author conclusion about maximizing profits, it is essential to have the knowledge of all the contributing factors. In this particular case relationship between the two industry is not mentioned, one conclusion which is true for one industry is assumed to be true for another industry, the conclusion of maximizing profits is based only on minimizing the cost. Without this information the argument remains unsubstantiated and is open to debate.