Why the Big Box Costs Less

Written by Studio AM.

Two boxes of the same rice sit on the shelf. The small one holds one kilogram and costs three dollars. The large one holds five kilograms and costs twelve dollars. The large box has a bigger number on the price tag, yet it is the cheaper rice. One kilogram costs three dollars in the small box and two dollars and forty cents in the large one.

One possible reason is that some packing costs do not rise as fast as the amount of rice. Printing one label or handling one package may cost about the same for a small box and a larger one. Spreading a fixed cost over more rice can lower the cost of each kilogram. This does not mean every large pack is cheaper.

This is why shops print a price per kilogram in small letters under the tag. This unit price helps you compare the same product in different pack sizes. But waste can cancel the saving. Buy five kilograms, eat one, and throw four away, and you paid twelve dollars for one kilogram. For the amount you used, the small box would have cost less.

Questions

Choose an answer. The explanation appears after you answer.

  1. Question 1 of 4

    According to the passage, what does one kilogram cost in the large box?

  2. Question 2 of 4

    What if the shopper buys the large box, uses one kilogram, and throws the rest away?

  3. Question 3 of 4

    What is the main idea of the passage?

  4. Question 4 of 4

    In this passage, a "fixed cost" is a cost that

Score: none answered yet.

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