The Most Important Factor in Location Planning for High-Contact Businesses

question 198

Short Answer

The most important factor in location planning for high-contact businesses is ___________, but for low-contact business the most important factor in location planning is ____________.
availability of labor; proximity to customers
proximity to customers; community living conditions
community living conditions; transportation costs
transportation costs; proximity to resource supplies
proximity to customers; proximity to resource supplies

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Definitions:

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salary, or insurance, providing stability to a company's expense structure.

Margin of Safety

The difference between actual or projected sales and the break-even point, often expressed as a percentage.

Contribution Margin Ratio

A financial metric showing the percentage of revenue that exceeds total variable costs, indicating how much revenue contributes to fixed costs and profit.

Break-even Sales

The amount of revenue needed to cover all fixed and variable costs, resulting in no profit or loss.