FleetFoot is a manufacturer of inexpensive but reliable running shoes. The shoes sell in major sporting goods chains and are positioned as the "work horse" of the running shoe segment of the estimated $23B domestic athletic shoe market. The athletic shoe market is quite large, selling nearly 400 million pairs of shoes at an average price per pair of $58.

FleetFoot's shoes sell for $40 per pair - about a 30% discount to the average price per pair and a fraction of the price of high end shoes that typically sell for $125-$150 per pair. In fact, FleetFoot's ad campaign is modeled after the famous Bic Shaver commercial from the late 1990's 3 blades are good enough. In FleetFoot's ads runners are portrayed as smart shoppers who recognize value when they see it. FleetFoot also has an exercise "expert" spokesperson who recommends runners get a new pair of shoes every 3 months without fail - no matter what brand of shoes they buy. Coincidentally, the average useful life of a pair of FleetFoot shoes is 3 months. A FleetFoot customer can purchase 3 pairs of FleetFoots - good for 9 months of running - for less than the price of 1 pair of high-end running shoes that will (according to FleetFoot's expert) last 3 months.

Select all of the expenses from the table above that constitute FleetFoot's fixed costs.

Labor Costs

Raw Materials

Advertising

Research & Development

Other General & Administrative

Depreciation & Amortization

Answer rating: 100% (QA)

Step 17 Fixed costs are the costs which are not dependent on the number of goods be... View the full answer