Think about it this way. It is about margin (where the profit comes from). Keep that marginal cost equal to your marginal rev and you are doing good. Stray

Think about it this way. It is about margin (where the profit comes from). Keep that marginal cost equal to your marginal rev and you are doing good. Stray too far and you are leaving money on the table or maybe taking a loss. Control a couple of key aspects of production and your marginal cost can be low. In this case I would say the jar and lid is probably the most expensive bit and the salsa is probably made by the barrel full. Also most grocery stores do not set the prices or own goods on the shelves. The wholesalers/vendors typically do and the grocers rent out the shelves to them based on location in the store, height off the floor, and length/depth of shelf needed.