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A retailer chain V is considering to open a new shop (X) with the size of 2500 square meters in the new trading area

  

A retailer chain V is considering to open a new shop (X) with the size of 2500 square meters in the new trading area of Ho Chi Minh City where they can easily attract more potential customers. There are three existing shops (A, B, C) which will provide the competion. The main customers come from district 10 and 3 of the city. Based on the collected historical data, we find that =2. Using information in table below: + Travelling distance Location Size (square meters) (Km) District 10 Shop X 2500 2 Shop A 1500 4 Shop B 500 5 Shop C- 1200 3 District 3 Shop X 2500 5 Shop A 1500 2 Shop B 500 4 Shop C 1200 3 The market sizes of District 10 and 3 are estimated 500 millions VN/ month, 450 millions VN/month, respectively. a) Calculate the expected sales of the new store. (15 marks) b) If the average monthly sale is XXX millions VN (Replace XXX by any 3-digit number that you like), will you decide to open the shop X in proposed location? Explain your decision? (5 marks)

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