Question $32$

Costco's Kirkland private label brand has contracted with a manufacturer to produce Kirkland branded nut butter to compete against Justin's.

Of the following, which statement best represents Costco's relationship with the manufacturing partner?

The manufacturer owns the recipe and Costco does the production.

The manufacturer owns the recipe and does the production.

Costco and the manufacturer share ownership of the recipe, and they both do production.

The peanut farmer supplies peanuts and owns the recipe and the manufacturer does the production.