That doesn't tell the whole story, though. The cost of preparing and burying a body is, presumably, fixed in normal circumstances. Fancier caskets are a discretionary addition.

Unless the body prep/burial is offered as a free complimentary service when you buy a casket, then presumably the bill for those services covers their cost.

Perhaps competition has set an expectation of a certain price for the service aspect, which is a loss-leader, and then providers make up the loss on casket sales.

If the funeral homes were selling only a casket, I could see it being a volume thing. But I'd expect the fixed costs of the business to be covered by the service fee, hence my question.