At least in developed countries...
Did you know that if wheat prices go up 100%, this will only translate into a 30% increase in the price of flour and a much lower 10% increase in the price of bread...
I don't understand. If wheat prices double, how can flour producers only rise their rates by 30%? I can't imagine their profit margins are high enough to be able to absorb a price hike as extreme as that.
There are other costs that the miller incurrs when making flour... The P&L of the miller includes: Wheat Transportation Depreciation of Machinery Labor Admin Expenses etc...
Turns out that wheat is not that important...
The same can be said (I think) about cotton and a t-shirt
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I don't understand. If wheat prices double, how can flour producers only rise their rates by 30%? I can't imagine their profit margins are high enough to be able to absorb a price hike as extreme as that.
ReplyDeleteThere are other costs that the miller incurrs when making flour...
ReplyDeleteThe P&L of the miller includes:
Wheat
Transportation
Depreciation of Machinery
Labor
Admin Expenses
etc...
Turns out that wheat is not that important...
The same can be said (I think) about cotton and a t-shirt
Best work you have done, this online website is cool with great facts and looks. I have stopped at this blog after viewing the excellent content. I will be back for more qualitative work. best-laptop-for-medical-billing-and-coding
ReplyDelete