I didn't twist it to fit my beliefs: i presented a scenario that is actually more expensive than what it would be in reality and showed how even that would not be a substantial increase in cost, even if it was paid for exclusively by increasing the price of products sold.

A $1M/mo additional increase in supply costs would be less than .1% of their revenue. It just manages to be .1% at $10M/mo. Given that the $1.2B/yr payroll cost I cited above is actually only 4.5% of Kraft's yearly revenue (I rounded up to 5% for simplicity), the additional supply chain cost you present would actually be covered by the 5% price increase I initially mentioned. It would in fact be covered by that 5% even at $10M/mo.