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1. The company's shipments of newly-produced branded and private-label footwear from its plants to its regional distribution centers are subject to
a. any applicable import tariffs and exchange rate adjustments.
b. 2 million-pair import quotas on all shipments from foreign plants to Europe-Africa.
c. tariffs of $3 per pair, shipping fees of $2.00 per pair, and exchange rate shifts of as high as 10%.
d. export fees equal to 7.5% of the manufacturing costs of the pairs shipped and exchange rate shifts of as high as 10%
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When quality discounts are introduced, will optimum order quantity be made smaller, unchanged, or larger? Illustrate by using a numerical example.
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