Question-1: Kangaroo Company is a holding company that owns companies in various industries. Kangaroo is thinking of purchasing an existing grocery store and is choosing among 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: Quarterly Fixed Costs Contribution Margin Ratio Projected Quarterly Sales Discount Store Conventional Store $7,500,000 $9,500,000 42% 46% $19,000,000 $22,000,000 Premium Store $12,500,000 55% $24,000,000 Assume the initial investment in each facility is equal. Based solely on financial considerations, which store type would you recommend? Quarterly Fixed Costs Contribution Margin Ratio Projected Quarterly Sales Breakeven Revenue Quarterly Profit Discount Store $7,500,000 42% $19,000,000 Conventional Store $9,500,000 46% $22,000,000 Premium Store $12,500,000 55% $24,000,000