A Store Manager Notes That the Space Productivity Index for a Particular

question 83

Multiple Choice

A store manager notes that the space productivity index for a particular product category is 1.35.Based on this information,the manager should consider:

• A) reducing the amount of space allocated to this category, since it is underperforming.
• B) lowering the price of the merchandise in this department in order to boost its sales per sq. ft., which will improve its index.
• C) firing the buyer, because 1.35 is a very poor space productivity index number.
• D) moving the product class to a more visible location within the store in hopes of improving the department's weak performance.
• E) increasing the amount of space allocated to this category, since it has a very good space productivity index.

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Definitions:

Earnings Per Share

A financial metric calculated by dividing a company's net income by the number of its outstanding shares.

Dividend Per Share

The amount of dividend that is paid out for each share of stock held by shareholders.

Market Price

The current value at which an asset, commodity, or service can be bought or sold in a marketplace.

Price-earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, used to evaluate the attractiveness of a stock.