How did Costco's pricing action on jeans draw criticism from Wall Street?

Multiple choice question.

Costco failed to pass on its savings to customers by raising the markup percentage when it bought jeans at a low price.

Costco failed to pass on its savings to customers by leaving prices unchanged when it bought jeans at a low price.

Costco gave extraordinary savings to customers by lowering the markup percentage when it bought jeans at a low price.

Costco passed on its savings to customers by leaving the markup percentage unchanged when it bought jeans at a low price.

1 answer

The correct answer is:

Costco failed to pass on its savings to customers by leaving prices unchanged when it bought jeans at a low price.