Customer-Level Planning 7-Eleven operates a number of convenience stores worldwide. Assume that an analysis of operating costs, customer sales, and customer patronage reveals the following $120,000/year Fixed costs per store Variable cost ratio Average sale per customer visit Average customer visits per week Customers as portion of city population 0.80 $21.00 1.50 0.05 Determine the city population required for a single 7-Eleven to earn an annual profit of $40,000. Round annual contribution per customer to two decimal places. For customers required for desired profit and required population, round up to the nearest whole number (i.e., 325.333 customers = 326) Annual contribution per customer $ Customers required for desired profit Required population 0 0 0
Customer-Level Planning 7-Eleven operates a number of convenience stores worldwide. Assume that an analysis of operating costs, customer sales, and customer patronage reveals the following $120,000/year Fixed costs per store Variable cost ratio Average sale per customer visit Average customer visits per week Customers as portion of city population 0.80 $21.00 1.50 0.05 Determine the city population required for a single 7-Eleven to earn an annual profit of $40,000. Round annual contribution per customer to two decimal places. For customers required for desired profit and required population, round up to the nearest whole number (i.e., 325.333 customers = 326) Annual contribution per customer $ Customers required for desired profit Required population 0 0 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Customer-Level Planning
7-Eleven operates a number of convenience stores worldwide. Assume that an analysis of operating costs, customer sales, and customer patronage reveals the following:
$120,000/year
Fixed costs per store
Variable cost ratio
Average sale per customer visit
Average customer visits per week
Customers as portion of city population
0.80
$21.00
1.50
0.05
Determine the city population required for a single 7-Eleven to earn an annual profit of $40,000.
Round annual contribution per customer to two decimal places.
For customers required for desired profit and required population, round up to the nearest whole number (i.e., 325.333 customers = 326)
Annual contribution per customer $
Customers required for desired profit
Required population
0
0
0
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