The author assumes that operational costs will remain the same over the years, but these will likely fluctuate. Take mimimum wage, for example, which usually increases every few years. If, periodically, Olympic Foods has to pay their employees more, the cost of food may rise in order to cover the extra money spent on wages. And don’t forget that the cost of food will be affected by the market demand. Olympic Foods may have to increase their prices in order to remain competitive with other food-processing companies.
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