Based on the industry-low, industry-average, and industry-high values for the be

Question

Based on the industry-low, industry-average, and industry-high values for the benchmarked data in each issue of the FIR, which of the following is an unconvincing or untrustworthy indication that one or more elements of your company's costs are too high relative to the costs of rival companies?
The reject rates for branded shoe production at one or more of your company's plants are well above the industry average
Your company's operating profits per pair sold in all 4 geographic regions of the wholesale segment for branded footwear are below the industry-high values
Your company's marketing expenses per pair sold in both the Internet and wholesale segments are the highest in the industry
Your company's labor costs per pair produced at one or more plants are 20% or more above the industry-average number
Your company's warehouse expenses per pair sold in both the wholesale and Internet segments are above the industry average

Explanation / Answer

The cost which is a company incurs more when compared to the whole industry, such cost is the strong indication of the company's position with its rival companies.

Therefore, "Option-D The company's labor costs per pair produced at one or more plants are 20% or more above the industry-average number" is correct.

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