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What year should the business shut down the stores and become an on-line only business? Assume: Retail Store sales are declining (-$100,000 per year) If
What year should the business shut down the stores and become an on-line only business?
Assume: Retail Store sales are declining (-$100,000 per year) If you close the store, 25% of the store sales will migrate to e-commerce E-commerce SG&A can be managed to 25% of sales
2025 2024 $ $ $ Current Projections Store sales e-commerce sales Total Sales Gross Margin % Gross Margin $ SG&A EBIT 2023 800,000 $ 180,000 $ 982,023 $ 42.0% 412,450 $ 463,050 $ (50,600) $ 2022 900,000 $ 175,000 $ 1,077,022 $ 42.0% 452,349 $ 441,000 $ 11,349 $ 2021 1,000,000 $ 170,000 $ 1,172,021 $ 42.0% 492,249 $ 420,000 $ 72,249 $ 2020 1,100,000 165,000 1,267,020 42.0% 532,148 400,000 132,148 A A A SG&A/sales 58% 49% 42% 36% 2025 2024 $ $ $ Current Projections Store sales e-commerce sales Total Sales Gross Margin % Gross Margin $ SG&A EBIT 2023 800,000 $ 180,000 $ 982,023 $ 42.0% 412,450 $ 463,050 $ (50,600) $ 2022 900,000 $ 175,000 $ 1,077,022 $ 42.0% 452,349 $ 441,000 $ 11,349 $ 2021 1,000,000 $ 170,000 $ 1,172,021 $ 42.0% 492,249 $ 420,000 $ 72,249 $ 2020 1,100,000 165,000 1,267,020 42.0% 532,148 400,000 132,148 A A A SG&A/sales 58% 49% 42% 36%Step by Step Solution
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