Abstract: A variable volume carton box has a top a lid with flaps which are secured in the conventional manner for cereal boxes or other boxes used to contain like commodities sold in grocery stores and supermarkets. At least one intermediate circumferential perforation is located around the box so as to allow the box to be reduced in size. Once the box is reduced in size by tearing or cutting along the perforation, another set of intermediate flaps are attached circumferentially around an interior section of the carton box to form the new lid used when the box is reduced in size. If a flexible airtight lining is used within the box, a circumferential perforation or mark line is located thereon just above the circumferential perforation of the variable volume carton box to allow the lining to be folded, thereby forming an airtight lining within the reduced volume carton box.