Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please provide formula and answer on how to find the annual contribution per customer. Thank you! Customer-Level Planning 7-Eleven operates a number of convenience stores
Please provide formula and answer on how to find the annual contribution per customer. Thank you!
Customer-Level Planning 7-Eleven operates a number of convenience stores worldwide. Assume that an analysis of operating costs, customer sales, and customer patronage reveals the following: $100,000/year 0.80 Fixed costs per store Variable cost ratio Average sale per customer visit Average customer visits per week Customers as portion of city population $19.00 1.50 0.05 Determine the city population required for a single 7-Eleven to earn an annual profit of $40,000. Round annual contribution per customer to two decimal places. For customers required for desired profit and required population, round up to the nearest whole number (i.e., 325.333 customers = 326) $ 3.8 x Annual contribution per customer Customers required for desired profit Required population 473 9,447Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started