Warehouse expenses are 5.4% of net revenues. Administrative expenses are 2. 9% of net revenues. Marketing costs are 10. 9% of net revenues. Cost of pairs sold are 53. 6% of net revenues.
8. According to the cost allocation procedures discussed on the Help screens for the Private Label Sales Report and the Marketing and Admit Report, which one of the following is included as part of a company’s cost in supplying private-label footwear o chain retailers?
- A proportionate share of corporate administrative expenses
- A proportionate share of accompanying costs for celebrity endorsement contracts
- A proportionate share of plant supervision costs, plant maintenance, and plant depreciation in those plants where private-label pairs are produced
- A proportionate share of accompanied expenditures for retailer support
- A proportionate share of accompanied advertising expenditures
9. Which one of the following is NOT a way to effectively differentiate a company’s branded footwear from the brands of rivals?
- Compensate plant workers at levels that exceed all other companies in those geographic regions where the company has plants–and thereby boost the company’s image as a great place to work
- Provide free shipping to all buyers at the company’s websites
- Win sufficient celebrity endorsement contacts to achieve higher celebrity appeal ratings in the various geographic regions than most all other rivals
- Deliver orders for branded footwear to footwear retailers in a shorter time than most all other rivals
- Produce and market branded footwear with a higher SIS rating than the branded outwear of most all other rivals
10.Based on the industry-low, industry-average, and industry-high values for the benchmark data in each issue of the FIR, which of the following is an unconvincing or untrustworthy indication that one or more elements of your company’s costs are too high relative to the costs of rival companies?
- Your company’s warehouse expenses per pair sold in both the wholesale and Internet segments are above the industry average
- Your company’s operating profits per pair sold in all 4 geographic regions of the wholesale segment for branded footwear are below the industry-high values
