Kangaroo Company (KC) is a holding company that owns various businesses. KC is thinking of purchasing an existing grocery store and is choosing amongst three alternatives: a discount grocery store, a grocery store that would compete with chain grocery stores, and a premium grocery store.

Research has gleaned the following information on the three alternatives:

	Discount Store	Conventional Store	Premium Store
Quarterly Fixed Costs	$7,500,000	$9,500,000	$12,500,000
Contribution Margin Ratio	43%	47%	55%
Projected Quarterly Sales	$19,000,000	$22,000,000	$24,000,000

The initial investment in each facility will be three times quarterly fixed costs. Based solely on financial considerations, which store type would you recommend?

	Discount Store	Conventional Store	Premium Store
Quarterly Fixed Costs
Contribution Margin Ratio
Projected Quarterly Sales
Breakeven Revenue
Quarterly Income
Investment Required
Return on Investment