Question

It is reasonable for a company's management team to abandon efforts to win contracts to supply private-label footwear to chain retailers in a given year when it believes the company has good prospects to profitably sell all of the branded pairs it can produce at its existing production facilities (including full use of overtime) the private-label operating benchmark data on p. 7 of the latest FIR shows that the industry- low margin over direct costs per pair sold was only $4.85. chain retailers require a minimum 4.5-star S/Q rating on all offers to supply them with private. label footwear company managers anticipate that more than 50% of rival firms are likely to bid for private- label contracts the data in the Comparative Competitive Efforts section of latest Competitive Intelligence Report indicates that one or more winners of private-label footwear contracts had a 25% (or more) market share of private-label sales in one or more geographic regions.

Answer 1

Ans 1st option (It believes the company has good prospects to profitable sell all of the...........)

If company is confident to sell all of the branded pairs, it doesn't make sense to supply private label footwear