Target is considering opening mini-Target stores in airports across the United States. Target knows that 25% of
Question:
Target is considering opening mini-Target stores in airports across the United States. Target knows that 25% of the items in its store account for 70% of the store's sales and expects that this Pareto relationship will hold for the mini-Target stores. The mini-Targets will each carry 50 items, but it's unknown at this point which 50 items will be stocked. The annual sales of a mini-Target is forecasted to be $500,000.
Assume A items are top 20% of items sold, B items are the next 30% and C items are the bottom 50% of items sold. Turnover is expected to be for A items = 50, B items = 40 and C items = 10
1. The top 20% of items in the min-Target store will account for what percent of sales?
A. 63.6%
B. 68.7%
C. 56.2%
D. 42.9%
2. What is the annual item sales expected to be for the worst selling product in the mini-Target store?
A. $145
B. $1,453
C. $13,905
D. $32,781
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts