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3) The biggest drivers of higher costs for the firm are higher raw materials costs slower manufacturing times higher transportation and labor costs higher inventory carrying costs The higher costs incurred by Crocs will be passed along to consumers through higher prices be absorbed by lowering production costs push the firm's profit margins lower result in lower sales 4) According to Crocs CEO Andrew Rees, the pandemic almost pushed the firm into bankruptcy cost the firm millions in sales since consumers could not shop in stores pushed costs lower since factories were shut down helped the firm increase sales since consumers migrated to comfort 1) Andrew Rees noted a longer term consumer shift toward higher cost footwear that might harm the firm buying lower cost disposable shoes comfort that also benefits the firm color combinations that only Crocs offer