Production cost of Nike shoes is $32.50.?

Question

What percentage of the total cost of production of an average pair of shoes goest to pay for advertising, promotions, and endorsement fees for the athletes who promote Nike shoes?........ Isnt't it 20%?? Please help! Thanks!

Answer 1

First of all, where do you get the production cost of Nike shoes being $32,50. Do you know what the phrase" cost of production" means? Which factors go into making " cost of production" ? The items mentioned like advertising,promotions, endorsements are not included in " costs of production". These are all advertising and marketing costs.