If you're Betty Crocker and only 10% of your customers want lemon cake mix but 80% want and buy chocolate...yes, it does cost more to make lemon cake mix, becau

If you're Betty Crocker and only 10% of your customers want lemon cake mix but 80% want and buy chocolate...yes, it does cost more to make lemon cake mix, because you buy chocolate ingredients at nine times the volume you do lemon. If you're a cake mix company that only sells chocolate cake mix, switching up production to include vanilla has expenses all by itself. You now have to manage extra ingredients in your supply chain, schedule time to switch production and all the overhead and downtime in doing so...and your factory-to-retail logistics chain is now both more complicated and split between the two products. If you retail cake mixes, why would you dedicate capital, storage, and shelf space to something that sells at one ninth the rate? Etc.