Marketing Question

timer Asked: Nov 19th, 2016

Question description

Please give me an explanation accoroding to below questions.

Use of "Green" Footwear Materials

Involves using environmentally friendly or "green" materials in manufacturing athletic footwear at all plants. Raises the cost of standard materials by $0.50 and superior materials by $1.00.

Use of Recycled Boxing / Packaging

Involves the use of recycled packaging materials to box each pair of athletic footwear at company distribution centers. Raises shoe packaging costs by $0.20 per pair.

Energy Efficiency Initiatives $

per distribution center and

million pairs of plant capacity

Involves investments to improve energy efficiency and using renewable energy sources. Treated as capital investment depreciated at 5% per year.

Charitable Contributions $


of operating profit

Involves making pre-tax donations to charities / charitable causes. Treated on the Income Statement as "Other Expense" (reduces pre-tax profits).

Ethics Training / Enforcement

Involves training for and development / enforcement of a code of ethics. Increases administrative expenses by $250k (Managers Only option) plus $150k per plant (All Employees option).

Workforce Diversity Program

Involves initiatives to achieve and maintain workforce diversity concerning age, sex, ethnicity, and other factors. Entails additional administrative expense of $500k for testing, screening, and hiring.

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