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Customer-Level Planning Circle K, a company of Alimentation Couche-Tard, operates a number of convenience stores worldwide. Assume that an analysis of operating costs, customer sales,
Customer-Level Planning Circle K, a company of Alimentation Couche-Tard, 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 $125,000/year Variable cost ratio 0.60 Average sale per customer visit $10.00 Average customer visits per week 2.00 Customers as portion of city population 0.05 Determine the city population required for a single Circle K to earn an annual profit of $75,000. 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
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