Final answer:
The correct option is d. All of the above.
The majority of a garment's retail price covers marketing, manufacturing costs, and retailer profits and overhead, not just the worker's wage.
Step-by-step explanation:
The question of how a retail price for clothing is allocated reveals a complex distribution of costs, with the worker's wage constituting only a small fraction. The majority of the retail price encompasses various other expenses crucial to the production and sale of the garment.
Marketing and advertising expenses play a significant role in shaping the final retail price. Companies invest substantial resources in promoting their products to appeal to consumers, and these costs are factored into the overall price tag. The strategies employed to create brand awareness and attract customers contribute to the expenses associated with marketing.
Manufacturing costs and materials constitute another substantial portion of the retail price. The quality of materials, production processes, and labor involved in manufacturing all influence the final cost. High-quality materials and ethical manufacturing practices often contribute to a higher overall expense.
Retailer profits and overhead expenses further impact the retail price. Retailers require a margin to cover their operational costs, including maintaining store spaces, utilities, and salaries for sales staff. These overhead costs are distributed among the products sold in the store, adding to the retail price.
In conclusion, the final retail price of clothing is a composite of various components, including marketing and advertising expenses, manufacturing costs and materials, as well as retailer profits and overhead. Each of these factors contributes significantly to the overall cost structure, underscoring the complexity of pricing in the clothing retail industry. Therefore, the answer to the question is indeed "d. All of the above."