A. Materials, hardware & laborB. Materials & HardwareC. Materials, hardware, shipping, & import dutiesD. Shipping DutuesE.Materials and Labor

Required information The Value Chain for Everlane, Inc. Every company's business consists of a collection of activities undertaken in the course of producing, marketing, delivering, and supporting its product or service. All the various activities that a company performs internally combine to form a value chain-so called because the underlying intent of a company's activities is ultimately to create value for buyers. In this activity you will be asked to evaluate the value chain for Everlane, an American clothing retailer that sells primarily online direct to consumers. The organization is headquartered in San Francisco, California and also has stores in New York City, Boston, LosAngeles, and Palo Alto. The company was founded with the mission of selling clothing with transparent pricing. The goal of this activity is for you to understand how value chain activities affect a company's cost structure and customer value proposition. Before completing this activity, be sure to review Ch. 4, "Evaluating a Company's Resources, Capabilities, and Competitiveness," specifically, the section entitled "Question 3: Are the Company's Cost Structure and Customer Value Proposition Competitive?" as well as Figure 4.1 and Concepts and Connections 4.1. The information about Everlane's average costs of producing and selling a pair of their slim-fit denim jeans is below. Materials (11 oz. denim - 98% cotton; 2% elastane $12.78 Hardware (metal fasteners, trim) 2.15 Labor 7.50 Cost of Goods 22.43 Shipping 1.90 Import Duties 3.70 Total Cost 28.03 Everlane Retail Price 68.00 Everlane Profit Margin (Retail Price - Total Cost) 39.97 Average Traditional Retailer's Price 140.00 Source: Everlane.com/about (accessed 2/08/20). Source: Adapted from Christina Brinkley, "What Goes into the Price of Luxury Sheets?" The Wall Street Journal, March 29, 2014, www.wsj.com/articles/SB10001424052702303725404579461953672838672 (accessed February 16, 2016). Which of the company's costs correspond to the primary value chain activities depicted in Figure 4.1? Prev 3 of 9 Next >