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In the private-label operating benchmarks section on p. 7 of each issue of the FIR, the industry-low, industry-average, and industry-high benchmarks for the margins over direct costs (as explained in the Help section for this same page) should be interpreted as representing
A. the net profit earned on each pair of private-label footwear sold in a given region.
B. how much sellers of private-label footwear received per pair sold over and above materials costs and direct labor costs.
C. how much sellers of private-label footwear received from each private-label pair sold that is available for repaying bank loans.
D. how much sellers of private-label footwear received from each pair sold that can be immediately used for purchasing shares of outstanding common stock.
E. how much in dollars and cents was earned (or lost) on each pair of private-label footwear sold to chain retailers; progressively higher direct margins signal greater contributions to (a) helping pay any portion of branded expenses not covered by branded revenues in a given region and (2) boosting the company's operating profits in the region.

Sagot :

Tundexi

The industry low, average and high benchmarks for the margins over direct costs (should be interpreted as representing how much sellers of private-label footwear received from each private-label pair sold that is available for repaying bank loans.

What is a private label product?

A private label product refers to a product that is manufactured by a third-party manufacturer and sold under the retailer's brand name.

Hence, the industry's benchmark should represents how much sellers of private-label footwear received from each private-label pair sold that is available for repaying bank loans.

Therefore, the Option C is correct.

Read more about private label

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