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For simplicity imagine a store that sells just one product, peaches. As the grocer, you buy $850,000 worth of peaches from Del Monte every year.

For simplicity imagine a store that sells just one product, peaches. As the grocer, you buy $850,000 worth of peaches from Del Monte every year. You sell the peaches for $1,300,000. Your annual operating expenses are $275,000. Your annual working capital expense is $40,000. Your annual fixed asset costs are $500,000. One reasonable explanation the fixed assets as a percentage of sales depicted above differs from the values shown in figure 5-6 in the grocery revolution is...

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store has an efficient store design

the store employs a just in time inventory control system

the store leverages nearby public parking so maintains none of its own parking area.

the store maintains an expensive retail location

the store effectively trains is labor force

the store operates on an outlot near Walmart

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