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kirill [66]
4 years ago
12

Customer-Level Planning Circle K operates a number of convenience stores worldwide. Assume that an analysis of operating costs,

customer sales, and customer patronage reveals the following:Fixed costs per store ............................................$80,000.00/year
Variable cost ratio...............................................0.80
Average sale per customer visit....................................$15.00
Average customer visits per week..................................1.75
Customers as portion of city population .............................0.04
Determine the city population required for a single Circle K to earn an annual profit of $40,000
Business
1 answer:
Naddika [18.5K]4 years ago
4 0

Answer:

11,000 people

Explanation:

fixed costs per store $80,000

variable cost ratio 0.80

average sale per customer $15

average customer sales per week 1.75

customers as portion of population 4%

each customer shops 1.75 x 52 = 91 times per year

contribution margin per visit = $15 - ($15 x 0.8) = $3

contribution margin per client per year = $3 x 91 = $273

in order to make $40,000 in profits, you need at least:

($80,000 + $40,000) / $273 = 439.56 ≈ 440 customers

to determine the city's total population = 440 / 0.04 = 11,000

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Basic research is a preliminary study conducted to identify certain aspects of a given item or event. The study is more informative than conclusive and leads to secondary research to acquire more details over the item or event. The reasons for conducting basic research include testing the results of a primary study to find out its relevance or saving resources in large research that bring no added value.

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3 years ago
Which of these conditions helped establish the foundation for a market revolution in the United States
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Question Completion:

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Answer:

The condition that helped to establish the foundation for a market revolution in the United States is:

Rapid improvements in transportation and communication

Explanation:

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3 0
3 years ago
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Answer:

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Answer and Explanation:

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