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Many organizations are being forced to change their input costs due to the increasing cost of raw materials and transportation costs among others. The increase in the input costs has forced businesses to increase the price of their commodities so that they can reach their profit margins.  According to the article, “Company Costs Are Rising, but Getting Shoppers to Pay More Is Hard” such an aspect has affected many companies such as PepsiCo Incorporation (Eric, et al., 2018).

PepsiCo Incorporation’s North American beverage store has been forced to increase the price of its products from 1% to 2%. Therefore, the costs that are changing in the company are the input costs and output costs. The company has to alter such expenses which are the variable costs when making short-run decisions like establishing the number of goods that the company should produce. (Eric, et al., 2018)…