I want to do another example with you now. But instead of doing sort of the made up example of consumption-adjusted margins like I did last time. I want to do an example with real data from a case that's coming up, the Heinz case. So we're going to look again at consumption-adjusted margins. And we're going to use real package sizes of ketchup. Now, it turns out that when you buy a larger size of ketchup you use more ketchup. You've got a giant bottle of ketchup and you turn it upsides down over your cheeseburger, or your french fries. And just more ketchup tends to come out of it. For whatever reason, we noticed that when people buy larger sizes that really is causal and causes them to use more ketchup. In particular in this example, we're going to look at three sizes of ketchup that occur in the case. One is a 24 oz size, another is a 36 oz size, and finally, we have a 46 oz size that we're dealing with. And on these sizes, Heinz makes different margins. Okay, so if I put the margins up here, and these are margins on the bottle, okay? On the 24 oz size, they make 33 cents. On the 36 oz size they make 56 cents. And finally on the 46 oz size they make 71 cents. But what's remarkable is not this margins, per se. What's remarkable is the consumption expansion that occurs. So I'm going to put CA up here which is consumption expansion. And we're going to use the 24 oz size as the baseline case. So relative to the 24 oz size, when you buy a 36 oz size of ketchup, it causes you to use 44% more ketchup. Well that's a large number, right? Well, look at this for 46 oz size. If you take a 46 ounce size, it's a 78% consumption expansion. So our question is, how do we use this information to calculate consumption-adjusted margins? And then once we have that information, kind of what can we do with it? So, for the consumption adjusted margins, I can take a look at that on all three of these sizes. So let's start with a 24 oz size. So we're going to recalculate these again, okay. For the 24 oz size the unit margins are simply the 33 cents that we have and that's coming from the margin on the overall bottle of ketchup divided by the 24 oz that are in the bottle itself. If you do that calculation, you get .014. Now, if you do the same kind of calculation for the 36 ounce size, okay. What you need is the 56 cent margin that you get. But this time you have to divide it by 36 oz, right? But what's different here is you now have to multiply that by the consumption expansion, just like we did in that previous example. Here the consumption expansion is 44%, so we're multiplying that by 1.44. When you do that particular calculation, you get .022. And finally, for the 46 oz size, we take the margin, which is 0.71. We divide that by the ounces, which is 46, okay. And then we multiply that by the consumption expansion, which is 1.78. When I do that particular calculation, I get .028. Now why do we do that? Why do we do that particular calculation? Well, because it's very illustrative of the differences in the amount of money that you're making between the sizes. In particular, if you look at the 24 oz size, you're making 0.014 per ounce. On the 46 oz size, you're making 0.028 per ounce. What does that tell you? You are making twice as much. Once you take into account the consumption expansion, you are making twice as much on the 46 oz size per ounce than you are on the 24 oz size. What does that mean in marketing terms or in pricing terms? It means that you should probably look to aggressively promote the 46 oz size because you're making so much more money on it.