MC Qu$.19$ Mohawk is a leader in sustainable and innova...

Mohawk is a leader in sustainable and innovative carpeting and floorings, as evidenced by its signature product, the world's first organic cotton carpet. Its

product is unique and has appealing customer attributes. If Mohawk's raw material costs increased by $12$ percent this year, what would be the likely outcome?

Multiple Choice

Mohawk would pass a major portion of this increase along as a price increase to its customers.

The company would launch an all$-$out effort to reduce other costs by $12$ percent.

Mohawk would lower profit margins to absorb this cost increase.

Mohawk would seek lower$-$cost materials, even if it meant losing the carbon$-$neutral label on the product.