Answer the following statement(s) true (T) or false (F)

1. When a merchandiser reduces the number of color offerings for a style in order to increase units in each color to save money, they may be risking loss of sales by limiting variety.
2. The product developer is most involved in the Profit and Loss Statement through gross margin.
3. Once the details and finishes (the "make") have been established in the design spec, the product development team have no choice but to continue to produce the item as designed in order to preserve the brand image, even if it means going over cost.
4. When a production facility uses the absorption costing method, all of the operating expenses are calculated by a percentage of the average cost of a garment that usually is made in the factory.
5. Financial decisions do not affect the decisions of creative designers.

1. True
2. False
3. False
4. False
5. False