Element of a company cost are high relative to rival company

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In which one of the following instances do the industry-low, industry-average, and industry-high values for the benchmarked data in each issue of the FIR provide strong indication that one or more elements of a company's costs are likely too high relative to those of rival companies?

• When the company's operating profit per pair sold in the Internet and Wholesale segments are the lowest in the industry in all four geographic regions

• When the company's warehouse expenses per pair sold in both the wholesale and Internet segments are 15% or more below the industry average

• When the company's reject rates for branded production are only about 5% below the industry average in those regions where the company has production plants

• When the company's total manufacturing costs per pair produced are $2-$3 above the industry low in all four geographic regions

• When the company's administrative expenses per pair sold are about 15% above the industry low.

Reference no: EM131200776

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