Canadian Federal Government budget does away with the penny. How does that work exactly?

[laundry_queen]

14. That's what contribution margin alludes to.

And what I'm saying is whatever company does do it, will possibly lose an equivalent amount on the psychological side. With competition, you will have several stores who might raise prices citing the loss of the penny, and you will also have stores that will advertise .96 price points to get market share. Pricing a product is a complicated thing and stores don't just pick a price out of the air. A higher price and thus higher contribution margin is not always better if you lose market share and thus lower your profit.

I don't think you are getting how it works. They aren't going to round up each product to eliminate the need for pennies. They are going to round the final amounts only if someone is paying cash. Sometimes that will mean rounding down, in which case the Harper government will lose GST on THAT particular transaction. It evens out.

I really don't get the outrage. It's not an additional tax.