> I don't understand this paragraph. If Footlocker was okay with $50 profit/shoe, why do they need to claim $75 profit/shoe in their costs per shoe go up? The c

> I don't understand this paragraph. If Footlocker was okay with $50 profit/shoe, why do they need to claim $75 profit/shoe in their costs per shoe go up? The costs of handling the shoes, retail space, advertising, and labor are all fixed. Some extra costs are real and linear to their "factory" price (returns, insurance, stolen stuff, less people buying less shoes, so they need higher margins to survive, etc.). On the other hand... they can raise their prices today by $whatever_tarrif_trump_mentioned, and blame trump for the price hike and pocket the extra profit.