Question: Although the U . S . ready to eat ( RTE ) cold cereal market has been losing sales over the last 5 to 8

Although the U.S. ready to eat (RTE) cold cereal market has been losing sales over the last 5 to 8 years or so, it is still very profitable. In 2018, the industry earned about $8.5 billion in sales. The industry is highly oligopolistic in that just four (4) firms: General Mills (GM), Kellogg (K), Post Holdings (PH), and Quaker Foods (PepsiCo)(Q) account for $7.5 billion of those sales. CostAccording to some unverified sources, the regular 15 oz. box of cereal (with basic nutritional value has the following costs: 0.70(basic cost); 0.32(cost of the outer carton and inner polymer liner bag); 0.27(sugar coating); $48,000(weekly fixed cost) Ranking of Top 10 RTE Cereal Brands (U.S)(Kiplinger News)20181. Cheerios (GM); Sales: $435.9m; Quantity Sold (QS): 139.1 million boxes (mb);Average Price (P): $3.132. Honey Nut Cheerios (GM); Sales: $421m; QS: 129.3mb; P: $3.263. Frosted Flakes (K); Sales: $412.6m; QS: 132.3mb; P: $3.12*4. Honey Bunches of Oats (PH); Sales: $375.2m; QS: 113.3mb; P: $3.375. Cinnamon Toast Crunch (GM); Sales: $344.3m; QS: 105.2mb; P: $3.27*6. Lucky Charms (GM); Sales: $283.4m; QS: 86.4m; P: $3.287. Froot Loops (K); Sales: $269.1m; QS: 91.7m; P: 2.93*8. Frosted Mini Wheats (K); Sales: $241.9m; QS: 71.3m; P: $3.40*9. Life (Q); Sales: $177.5m; QS: 58.1m: P: $3.0610. Fruity Pebbles (PH); Sales: $172m; QS: 54.1m; P:$3.19*

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