Oil prices down.Y is a quart so high?
Hi all. Going to change the oil in my Class'A'. Went to the auto parts store to get the oil. Conventional. A Barrel (55 Gallons)sells for about $32 on the world market. WHY does it STILL cost about $5...
Forum Discussion
jolooote wrote:
Hi all. Going to change the oil in my Class'A'. Went to the auto parts store to get the oil. Conventional. A Barrel (55 Gallons)sells for about $32 on the world market. WHY does it STILL cost about $5.00 a QUART???:M
your assuming selling price would be adjusted based on material cost.
In general, selling prices are set by mfg/seller to maximize gross profit taking into account the expected sales volume as selling prices change. If material prices or other costs go down, unless dropping the selling price would increase volume enough to get greater profit, mfg will not adjust the selling price. Basic Business 101.
