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Which of These Is True About a Pair of $200

Question 315

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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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