Which of These Is True About a Pair of $200

question 40

Multiple Choice

Which of these is true about a pair of $200 designer denim jeans?

• A) The manufacturer's labor to make them comprises the largest percentage of the final price, with other channel members clamoring over a mere 10 percent.
• B) Everyone gets a fair cut of the final price; the marketer will be cut off from the customer unless all channel members are profitable.
• C) The specialty retailers that sell them account for only 25 percent of the cost so that the jeans can benefit from demand pull.
• D) The final price is only this high when there is a lack of competition among cotton producers or other suppliers.
• E) The marketer of the designer denim jeans typically is not profitable for products like these.

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Definitions:

Low-Cost Cars

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Attractively Designed

Describes something created with aesthetics in mind, ensuring it is visually appealing or pleasing.

CVP Approach

Stands for Cost-Volume-Profit analysis, a financial modeling tool that helps companies understand the relationship between costs, sales volume, and profit.

All-Benefits Approach

A strategy focusing on comprehensively listing all potential benefits of a product or service to appeal to a wide range of consumers or stakeholders.