Which of these is true about a pair of $200 designer denim jeans?
A) The manufacturer's labor to make them comprises the largest percentage of the final price, with other channel members clamoring over a mere 10 percent.
B) Everyone gets a fair cut of the final price; the marketer will be cut off from the customer unless all channel members are profitable.
C) The specialty retailers that sell them account for only 25 percent of the cost so that the jeans can benefit from demand pull.
D) The final price is only this high when there is a lack of competition among cotton producers or other suppliers.
E) The marketer of the designer denim jeans typically is not profitable for products like these.

Question

Quizplus · Accepted Answer

The distribution of profits in the supply chain is typically balanced to ensure all channel members, including manufacturers, retailers, and marketers, remain profitable and motivated to continue their roles.

Which of These Is True About a Pair of $200