Which of the following statements about striving to reduce labor costs per pair produced at each of the company's plants is true?
		a) All companies, regardless of the strategy being employed, should pursue actions to manage employee compensation and labor productivity in a manner that results in labor costs per pair produced equal to (or very close to) the industry-low in each region where the company has plants.
		b) A company is better able to achieve low manufacturing costs per pair by compensating plant workers at levels either at or very close to the industry low in those geographic regions where it has plants than by pursuing actions to compensate plant workers at levels above the industry average.
		c) A company cannot achieve labor costs per pair produced that not only are below the industry average but are also close to the lowest in the industry (in each geographic region where it has plants) unless its annual total compensation of plant workers is considerably below the average total compensation paid by all companies with plants in these same regions.
		d) Pursuing actions to achieve low labor costs per pair produced at company plants is important only to those companies striving to be a low-cost/low-price provider of branded athletic footwear; companies pursuing a strategy to offer buyers premium branded footwear at a premium price do not really have to be concerned about having low labor costs per pair produced.
		e) It is very difficult for a company pursuing a differentiation strategy aimed at producing branded footwear with a high S/Q rating to achieve labor costs per pair produced that are below the industry average in each geographic region where the company has plants.

Transcribed image text