Refer to the Following Information to Answer the Following Questions

question 57

Multiple Choice

Refer to the following information to answer the following questions.
An entrepreneur considering two sites for a men and boys shop determines that (s) he needs sales of $158 per square foot to be profitable. Site #1 has 13,500 potential customers who spend an average of $160.20 per year on men and boys wear. Two competitors occupy 14,200 square feet of space. Site #2 has 10,800 potential customers who spend an average of $152.10 per year on men and boys wear. One competitor has 10,000 square feet.
-The index of retail saturation for site #1 is $________.

• A)150.21
• B)168.51
• C)152.30
• D)166.19

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Definitions:

Encourage Buyers

The practice of motivating potential customers to purchase a product or service through various strategies, including marketing, promotions, and incentives.

Stock Inventory

A detailed list of goods or materials a company has in stock, a critical component for managing supply chain and meeting customer demand.

Trade Terms

Agreed conditions between a buyer and a seller regarding the delivery, payment, and ownership of goods.

List Price

The manufacturer's suggested retail price (MSRP) that is intended to be the starting point for negotiations between buyers and sellers.