- Do you think that the cost per unit (cereal box, bottle, candy bar, etc)...
70.2K
Verified Solution
Link Copied!
Question
Accounting
- 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
- 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.
These questions have to do with the current 2022 market environment and the factors (production, fixed, variable cost increases) that are causing shrinkflation.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
