Question: Why would outsourcing result in a more variable cost structure for Levi Strauss? Levi Will Cut 20% of Work Force, Shut Six Plants in Restructuring,

Why would outsourcing result in a "more variable cost structure" for Levi Strauss? "Levi Will Cut 20% of Work Force, Shut Six Plants in Restructuring,"

"Levi Will Cut 20% of Work Force, Shut Six Plants in Restructuring," The Wall Street Journal, April 9, 2002, Teri Agins. Overview Levi Strauss turn to outsourcing its production, which the company's CEO says "supports a more vari- able cost structure, helps us maintain strong margins, and enables us to invest more resources in prod- uct marketing and retail initiatives."

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