Which of These Is True About a Pair of $200

question 315

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 contract manufacturer for the jeans receives the least percentage of the final price.
• E) The marketer of the designer denim jeans typically is not profitable for products like these.

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