what impact would the vendor requests for price increases have on a grocer's contribution margin? What are the implications? As a CEO, how would you address the issue? Please, link your analyses and answer to the CVP approach discussed in class.

Question is essentially asking: Given the nature of rising food prices due to suppliers increasing their prices, what would happen to the contribution margin of a grocery company? why would food prices increase? why is this bad? what can we do to solve it? and how can we relate it to the cost-volume-profit (CVP) analysis?

I need help understanding the connection between rising supplier prices of food and a grocery store's contribution margin. Thank you

Assumptions on CVP Analysis 1. Selling price is constant 2. Costs can be separated into fixed and variable elements 3. Unit variable costs and total fixed costs are constant over the relevant range 4. The Sales mix remains constant 5. Units produced = Units sold. Cost-Volume-Profit Analysis > To be profitable, how much do I have to sell? Cost-volume-profit (CVP) analysis is a powerful tool that managers use to help them understand the interrelationship among cost, volume and profit in an organization by focusing on interactions among the following five elements: - prices of products - volume or level of activity - per unit variable costs - total fixed costs - mix of products sold