Question
1. Do you think that the cost per unit (cereal box, bottle, candy bar, etc) or Contribution Margin per product has changed (increased or decreased)
1. Do you think that the cost per unit (cereal box, bottle, candy bar, etc) or Contribution Margin per product has changed (increased or decreased) when comparing to the products before the change in amount, weight, etc.? How about the cost per input (oz, lb, sheets, etc.)? In other words, by decreasing the amount offered per product, is the Contribution Margin or Gross Profit per unit different? Provide reasoning/examples/support
2. After "shrinkflating" the products, do you think that the companies need to sell the same amount to Break Even (assume a company with a single product that just reduced the size of the product by 10%, but is still selling it at the same price as before). Provide details/reasoning/examples/support for your answer
This question is based around the current state of the economy and shrinkflation that has come about as a result and how current production costs (fixed, variable. direct materials, etc.) are causing this.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started