Previous the enhanced profitability tha responsible activities Previous In supplying private label footwear to chain retailers the sizes of a company s margins direct costs as reported on p 6 of each issue of the FIR should be viewed as Question 2 how much the company received from each pair of private label footwear sold that cam used to help cover the company s dividend payments how many dollars the company earned from each pair of private label footwear sold could in turn be allocated to a helping pay the company s administrative expenses interest costs and 2 boosting the company s pretax profits how much the company received from each pair of private label footwear sold that can the be applied to helping pay the company s marketing expenses warehouse expenses a administrative costs which boosts the profit margins on branded footwear sales the net profit a company earned on each pair of private label footwear sold how much the company received from each pair of private label footwear sold over a above materials costs and direct labor costs those dollars can be used to cover supervision costs plant maintenance costs and plant depreciation none of allocated to the costs of producing private label footwear and supplying it to chain retalers Previous Question 3 Next The most attractive way to reduce or eliminate the impact of paying tariffs on pairs imported to an company s distribution warehouse in Latin America is to raise the company s selling price of footwear in Latin America by the full amount of the tariff and pass all tariff costs along to the Latin American purchasers of the company s footwear this strategy has the advantage of completely eliminating the company s exposure to import tariffs in Latin America build a plant in Latin America and then expand its capacity as may be needed so that the plant has the capability to supply all or at least most of the pairs the company intends to try to sell in Latin America lower the S Q rating on all pairs sold in Latin America no tariffs have to be paid on branded footwear having an S Q rating of 3 stars or below pursue a strategy of selling fewer pairs in Latin America than rival companies which will them keep the company s costs for import tariffs lower than those of rivals and give the company a low tariff cost advantage on its sales in Latin America lower the company s selling prices of pairs sold in Latin America to levels low enough to escape having to pay the import tariff Next