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This question allows the manager to potentially touch on a variety of factors that could have an adverse impact on raw material or labor costs related to sourcing. The manager's response may give the investor some valuable insight into the future direction of gross margins, which in turn will give some insight into future potential earnings. Truly savvy investors will compare the answer to this question with the earnings projections that the sell side is making.

Thanks!

I didn't find the right solution from the Internet.

References: www.investopedia.com/articles/stocks/08/...s-for-management.asp


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