A Researcher Does a Study for a New Super Target

question 11

Multiple Choice

A researcher does a study for a new Super Target store.The client wants to know which of five cities should be selected,and a specific location within the city of choice.The researcher investigates several sources of secondary data and finds the following:
City Population Growth Growth in Retail Sales
Metropolis 5% 14%
Smallville 7% 13%
Gotham City 4% 8%
The Big Apple 2% 4%
The Big Easy 10% 17%
The researcher,based on the information at hand,recommends The Big Easy,and asks to be paid.Why should the client not pay the researcher?

• A)the information not collected in a timely manner
• B)not enough information provided
• C)how the information was collected
• D)what information was collected
• E)none of the above

Identify and describe the purpose and types of cost-volume-profit (CVP) charts and graphs.

Calculate break-even points in units and dollars for single and multiple product scenarios.

Understand the concept of sales price per unit, variable cost per unit, and fixed cost.

Able to compute contribution margin ratio and understand its significance.

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Definitions:

Population

The total number of individuals within a specific area or of a particular species or group.

Rate of Return

The rate of return is the net gain or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.

Standard Return

The typical or average return expected from an investment, benchmarked against similar investments or industry standards.