• Discuss the value chain and representative costs for the various activities performed by the producers and marketers of apparel.
  • Answer this question using information in respect to the king-size sheet sets produced by Boll & Branch. Discuss both the necessary value chain activities and the representative associated costs.

A CONCEPTS & CONNECTIONS 4.1 E: ieTHE VALUE CHAIN FOR BOLL & BRANCH A KING-SIZE SET OF SHEETS FROM BOLL 8: BRANCH IS MADE FROM 6 METERS 0F FABRIC, REQUIRING 1 1 KILOGRAMS OF RAW COTTON. Raw Cotton $ 28.16 Spinning/Weaving/Dyeing 12.00 Cutting/Sewing/Finishing 9.50 Material Transportation 3.00 Factory Fee 15.80 Cost of Goods S 68.46 Inspection Fees 5.48 Ocean Freight/Insurance 4.55 Import Duties 8.22 Warehouse/Packing 8.50 ' Packaging 15.15 WIShuuerStOCk Customer Shipping 14.00 Promotions/Donations* 30.00 Total Cost $154.38 Boll & Brand Markup About 60% Boll & Brand Retail Price $250.00 Gross Margin\" $ 95-62 ' A $5 donation for every set of sheets sold is paid to an antihuman- traf'cking organization. \"Gross margin covers overhead, advertising costs, and profit. Source: Adapted lrom Christina Brinkley, \"What Goes into the Price of Luxury Sheets. '? The Wall StreetJournaI