Description: Canada Bread has responded to a class action lawsuit centred on alleged price-fixing in the bakery business by essentially saying, “blame it on our former parent company, Maple Leaf Foods.” Michael McCain, a former Maple Leaf CEO, was having no part of this in his statement, saying, “We continue to believe that the pricing practices of Canada Bread were responsible, consistent with industry practice, and above all, lawful.” In June this year Canada Bread had been fined $50 million after having plead guilty under Competition Act charges for price-fixing.
Date: December 8, 2023
Source: ctvnews.ca
Discussion points:
1) Do you buy commercial bread at the store from one of the large manufacturers, like Canada Bread?
2) How would paying $1.50 extra per loaf impact your budget as a student?
3) Illustration 9-1 of Wiley’s Managerial Accounting: Tools for Business Decision-Making depicts important pricing factors for companies making pricing decisions. What are the four big factors pictured for us in this graphic?
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