You're not missing something — the chain is internally inconsistent as written.

The per-head vs. per-hundredweight swap is actually plausible for inflating apparent costs: a dairy cow weighs 12-15 hundredweights, so a $5/head daily feed cost misread as $5/hundredweight would balloon to $60-75/head. So "feed expenses look much higher" checks out.

But then the pricing logic goes the wrong direction. Higher perceived costs -> lower calculated margin -> the rational response is to raise prices to restore margin, or at minimum flag the squeeze. Dropping prices when you think you're losing money on every unit is only coherent if the tool is running some kind of volume/elasticity model where it reasons "margins are tight, compete on price" — which is a legitimately dangerous default for spot milk contracts.

Most likely it's just a logic inversion in the story. Either the misparse inflated costs and the tool correctly raised prices (locking in above-market rates Ethan didn't notice because he was happy), or the misparse deflated costs and the tool undercut on price thinking it had headroom. Both are realistic failure modes. The version in the story mixes the two.

Fittingly, a specification error in a story about specification errors.