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 ...