Question
7-Eleven operates a number of convenience stores worldwide. Assume that an analysis of operating costs, customer sales, and customer patronage reveals the following: Fixed costs
7-Eleven 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/year |
| Variable Cost Ratio | .80 |
| Average Sale Per Customer Visit | $17 |
| Average Customer Visits Per Week | 1.50 |
| Customers as Portion of City Population | .05 |
DETERMINE THE CITY POPULATION REQUIRED FOR A SINGLE 7-ELEVEN TO EARN AN ANNUAL PROFIT OF $40,000
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Alternative Minimum Tax For Individuals IRS Audit Technique Guide ATG
Authors: Internal Revenue Service
1st Edition
1304131556, 978-1304131553
