Target is considering opening mini-Targetstores in airports across the United States.Target knows that 25% of the items in its storeaccount for 70% of the store's sales andexpects that this Pareto relationship will holdfor the mini-Target stores. The mini-Targetswill each carry 50 items, but it's unknown atthis point which 50 items will be stocked. Theannual sales of a mini-Target is forecasted tobe $500,000.Assume A items are top 20% of items sold, Bitems are the next 30% and C items are thebottom 50% of items sold. Turnover isexpected to be for A items = 50, B itemsand C items = 101. The top 20% of items in the min-Targetstore will account for what percent of sales?A. 63.6%B. 68.7%C. 56.2%D. 42.9%402. What is the annual item sales expected tobe for the worst selling product in the mini-Target store?A. $145B. $1,453C. $13,905D. $32,781

1. The top 20%of items in the mini- target store will account for percent of sales =68.7% so…

Target is considering opening mini-Target stores in airports across the United States. Target knows that 25% of the items in its store account for 70% of the store's sales and expects that this Pareto relationship will hold for the mini-Target stores. The mini-Targets will each carry 50 items, but it's unknown at this point which 50 items will be stocked. The annual sales of a mini-Target is forecasted to be $500,000.

Target is considering opening mini-Target stores in airports across the United States. Target knows that 25% of the items in its store account for 70% of the store's sales and expects that this Pareto relationship will hold for the mini-Target stores. The mini-Targets will each carry 50 items, but it's unknown at this point which 50 items will be stocked. The annual sales of a mini-Target is forecasted to be $500,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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