question archive In supplying private-label footwear to chain retailers, the sizes of a company's margins over direct costs (as reported on p
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In supplying private-label footwear to chain retailers, the sizes of a company's margins over direct costs (as reported on p. 6 of each issue of the FIR) should be viewed as | ||
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the operating profit a company earns on each pair of private-label footwear sold. |
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how much private-label sales added to the company's pretax profits, assuming that the company's margins on branded footwear were sufficient to cover all administrative expenses and all interest costs. |
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free cash flow, to be used as the company sees fit. |
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the net profit a company earns on each pair of private-label footwear sold. |
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money available to add to the company's retained earnings. |
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