Mega-Mart. Question b. Mega-Mart is considering purchasing a parcel of land adjacent to the current site on which it plans to build its store. The
Mega-Mart. Question b. Mega-Mart is considering purchasing a parcel of land adjacent to the current site on which it plans to build its store. The cost of the parcel is $190,000, and it would enable Mega-Mart to increase the size of its store to 160,000 square feet. Question c. Discuss whether Mega-Mart should purchase the land and increase the planned size of the store. Question d. Suppose that the profit per square foot will decline in all departments by 20% if the store size increases to 160,000 square feet. (If the stock does not turn over as fast, increasing inventory costs will reduce profit.) How might this affect Mega-Marts decision in (c)?
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