Problem
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.
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?