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ID: 394240 • Letter: I

Question

it View History Bookmarks People Window Help The Q Inte re | https://www.bsg-online.com/users/quaxr/#/simQuiz/commencing Simulation Quiz 2 Question 13 Previous Next C A company's management team should compete seriously against rivals to win a private-label footwear contract in a particular geographic region when o it concludes that the company has more than enough production capacity to produce the needed pairs of branded footwear and, based on its projections, determines that the C companyý's profitablity can be increased by competing for and winning private-labelO contracts all the sellers of private-label footwear in the prior year had a market share under 20% (as reported in the Competitive Intelligence Report). the data in the latest Competitive Intelligence Report indicates that some of the companies O competing to supply for private-label footwear were able to win contracts at offer prices above $25 per pair. the data in the latest Competitive Intelligence Report indicates that some of the winning price offers for private-label contracts resulted in greater per pair profits than were earned for branded footwear O the data in the latest Competitive Intelligence Report indicates that one or more rival firms did not submit price offers to chain retailers. Copying, redistributing, or website posting is expressly prohibited and constitutes copyright violation. Copyright 2018 by Glo-Bus Software. Inc. Previous Next > o sone by G Compensation.4320.doc Labor 4320.doc Shopping List.pd

Explanation / Answer

When the company has more than enough production capacity to produce the needed pairs of branded footwear and, based on its projections, determines that the company’s profitability can be increased by competing for and winning private-label contracts. Correct option.

It is correct as else the capacity of organization would remain idle.