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Please help me figure out these calculations for calculating hi-value supermarket's dollar gross profit and gross profit margin. How were these numbers calulated? CHAPTER 8

Please help me figure out these calculations for "calculating hi-value supermarket's dollar gross profit and gross profit margin". How were these numbers calulated? image text in transcribedimage text in transcribedimage text in transcribed

CHAPTER 8 PRICING STRATEGY AND MANAGEM Hi-value supermarket sales in Centralia: 2000-2002 EXHIBIT 4 2001 2002 2000 $4,287,686 $4 632 Store $4,050,277 5,174,051 North Fairview 5,374,513 5,194,972 4,227,304 4,514,551 West Main 4,098,898 South Prospect $13,689,041 $14,326700 $13,345,147 Total Source: Company records cleanliness are sacrificed for production, and the store lacks the quality and freshness present in the other supermarkets in Centralia." Ads low prices on particular items, which are displayed in large quantities at the ends of in the section of store. Unlike and American, which are free-standing, the Missouri Mart store is part of a complex a fur- types of stores, including several service shops, a bakery, a drug store and store Missouri Mart, the regional chain that built the Centralia and operated it for many years, recently franchised it to an independent busi nessperson who continues to operate the store under the Missouri banner. Hi-value supermarkets The three Hi-Value Supermarkets in Centralia were generally older than those of its major competitors. Each of the stores anchored a strip shopping center (owned by Hall Consolidated) consisting of a Hi-alue supermarket and a drugstore plus two or three shops (e.g., a dry cleaner, a shoe repair shop, a barber shop, or a florist. Sales for the three stores had increased over the past three years reaching $14,326,700 in 2002 (see Exhibit 4). The over all gross profit margin for the three stores was 28.8 percent in 2002. By compari the Us, supermarket industry gross profit margin was percent sales of the three Hi-value stores were divided as follows: grocery (in ing dairy), 50 percent; fresh meat, poultry and seafood 20 percent pror 18 percent; seasonal and general merchandise healt and goods and deli (in items), 7 percent; and bakery (including bread baked gins in each of uding self-serve and service deli), 5 percent. Gross profit ma these departments were grocery (including fresh meat, pot dairy), 30 percent

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