{"id":186385,"date":"2025-01-24T19:41:31","date_gmt":"2025-01-24T19:41:31","guid":{"rendered":"https:\/\/learnexams.com\/blog\/?p=186385"},"modified":"2025-01-24T19:41:33","modified_gmt":"2025-01-24T19:41:33","slug":"based-on-the-industry-low-industry-average-and-industry-high-values-that-appear-on-p-7","status":"publish","type":"post","link":"https:\/\/www.learnexams.com\/blog\/2025\/01\/24\/based-on-the-industry-low-industry-average-and-industry-high-values-that-appear-on-p-7\/","title":{"rendered":"Based on the industry-low, industry-average, and industry-high values that appear on p. 7"},"content":{"rendered":"\n

Based on the industry-low, industry-average, and industry-high values that appear on p. 7 ?of each issue of the FIR, which one of the following suggests that one or more of your company’s costs benchmarked on this page are likely to be too high compared to those of rival companies?<\/p>\n\n\n\n

Your company’s distribution and warehouse costs per pair sold are below the industry average by less than 20% ?in the North America region<\/p>\n\n\n\n

Your company’s cost of branded pairs sold in North America is 5% ?above the industry average<\/p>\n\n\n\n

Your company’s operating profit per pair sold in the Wholesale segment of the AsiaPacific region is below the operating profit margin in the Internet segment of the AsiaPacific region<\/p>\n\n\n\n

Your company’s operating profit per branded pair sold in the Wholesale segment in the North America region is below the operating profit in the Internet segment in the North American region<\/p>\n\n\n\n

Your company’s marketing expenses per pair sold in both the Internet and Wholesale branded footwear segments in the Latin America region are 30% ?above the industry average<\/p>\n\n\n\n

The correct answer and explanation is:<\/mark><\/strong><\/p>\n\n\n\n

The correct answer is:<\/p>\n\n\n\n

“Your company’s marketing expenses per pair sold in both the Internet and Wholesale branded footwear segments in the Latin America region are 30% above the industry average.”<\/strong><\/p>\n\n\n\n

Explanation:<\/h3>\n\n\n\n

This scenario indicates that your company’s marketing expenses are significantly higher than the industry average in the Latin America region, by 30%. Such a large deviation suggests inefficiency or excessive spending compared to rivals, making it the most likely reason for your company to have higher costs.<\/p>\n\n\n\n

Here\u2019s why the other options don\u2019t suggest high costs as strongly:<\/p>\n\n\n\n

    \n
  1. Distribution and warehouse costs below the industry average by less than 20% in North America<\/strong>
    This indicates some cost efficiency compared to rivals, though less significant. It does not suggest costs are above average.<\/li>\n\n\n\n
  2. Cost of branded pairs sold in North America is 5% above the industry average<\/strong>
    A 5% difference is minor and doesn\u2019t strongly suggest excessive costs\u2014though it could be monitored.<\/li>\n\n\n\n
  3. Operating profit per pair sold in the Wholesale segment of the Asia-Pacific region is below the Internet segment in the same region<\/strong>
    This is more about profit margin differences between segments, not necessarily high costs compared to rivals.<\/li>\n\n\n\n
  4. Operating profit per branded pair sold in Wholesale in North America is below the Internet segment in North America<\/strong>
    Similarly, this is more about profit margin differences between segments, not excessive costs relative to competitors.<\/li>\n<\/ol>\n\n\n\n

    The marketing expense deviation (30% above industry average) is the clearest indicator of costs likely being too high compared to rivals.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Based on the industry-low, industry-average, and industry-high values that appear on p. 7 ?of each issue of the FIR, which one of the following suggests that one or more of your company’s costs benchmarked on this page are likely to be too high compared to those of rival companies? Your company’s distribution and warehouse costs […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-186385","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/186385","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=186385"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/186385\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=186385"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=186385"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=186385"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}