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A local coffee chain has stores in five cities and is evaluating opening a second store in one of those cities. Existing stores are projected
A local coffee chain has stores in five cities and is evaluating opening a second store in one of those cities. Existing stores are projected to bring in $1 million in annual revenue each. The new store is also estimated to bring in $1 million. These projections don't take into account the effect of cannibalization. The coffee chain ran an analysis that estimates cannibalization, with higher numbers equaling more cannibalization. Based on the following data, which city should the company choose for the new store if they want to maximize overall revenue? City Where Coffee Chain Is Located Cannibalization Rate Tacoma, WA 8 Kent, WA 6 Spokane, WA 2 Olympia, WA 10 Vancouver, WA 5
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