In preparing for an audit of the retail footwear division of a major retail organization, the auditor gathered the following information about the organization's stores:

	All Stores	Northeast Region	Southwest Region	Mid-Central Region
Average sales per store	$ 736,000	$ 840,000	$ 760,000	$ 630,000
Average cost of goods sold per store	$ 375,000	420,000	$ 325,000	$ 395,000
Number of stores	48	13	18	17
Average square feet per store	1,800	2,200	1,850	1,550
Average sales per full-time employee	$ 137,000	$ 152,000	$ 140,000	$ 122,000
Average wage related expense per store	$ 98,000	$ 102,000	$ 82,000	$ 112,000
Average net profit contribution per store	$ 238,000	$ 285,000	$ 320,000	$ 115,000

Based on the previous information, which of the following preliminary conclusions can the auditor use as a basis for further investigations?

Multiple Choice

• Sales per store are directly related to the size of the store.

• Sale clerks are less productive in larger size stores.

• Gross margin is directly related to the size of the store.

• Average square feet of store correlates with the number of stores in the district.