Table shows three columns. Each column displays the cost component and the rate against it. Under the first column labeled as “manufacturer (Asia)”, the following items are displayed:

Materials: 9.00 dollars

Cost of labor: 2.75 dollars

Cost of capital: 3.00 dollars

Profit: 1.75 dollars

Shipping: 0.50 dollars

Import duty: 3.00 dollars

Nike’s cost: 20.00 dollars (displayed in bold).

The second column labeled as “Nike (Beaverton, Oregon)” shows the following items:

Cost of shoe to Nike: 20.00 dollars

Sales, distribution, and administration: 5.00 dollars

Advertising: 4.00 dollars

Research and development: 0.25 dollars

Nike’s profit: 6.24 dollars

Retailer’s cost: 35.50 dollars (displayed in bold).

The third column labeled as “Retailer (your town)” shows the following ...

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