Use the Information for the Question(s)below

question 30

Essay

Use the information for the question(s)below.
Your firm is preparing to open a new retail strip mall and you have multiple businesses that would like to lease space in it.Each business will pay a fixed amount of rent each month plus a percentage of the gross sales generated each month.The cash flows from each of the businesses have approximately the same amount of risk.The business names,square footage requirements,and monthly expected cash flows for each of the businesses that would like to lease space in your strip mall are provided below:
-If your new strip mall will have 16,000 square feet of retail space available to be leased,to which businesses should you lease and why?

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Definitions:

Sales Response Function

A model that illustrates how sales volume is influenced by various marketing-mix elements and environmental factors.

Marketing ROI

The application of modern measurement technologies to understand, quantify, and optimize marketing spending.

Market Share Profitability

The correlation between a company's share of the total market sales and its profitability, often used as a measure of business success.

Synergy Analysis

The process of examining how different parts of a business or system can effectively work together to produce greater outcomes than would be possible individually.