Page 44 - ESSAYBCTO ENG 3rd

■ Low production and supply costs

• Bulk purchases lower production costs and allow for cheaper supply.
• By selling in bulk quantities to consumers, production costs can be reduced and

supplied at a low price.
• Costs can be lowered by reducing additional costs through system supply.

producer quantity ground price supply price

10,000 units produced 100 won +α
100,000 units produced 80 won +α

1 million units produced 60 won +α

■ Margin (70%)

• Obtain high margins by reducing distribution stages and lowering supply prices
• The company's high margins allow it to supply products at low prices to sharin

g operators.
• High margins ensure the company's profits even if profits are distributed as sh
ared profits.

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