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:

Factory Overhead Rate

A calculation used to allocate manufacturing overhead costs to individual units of production, based on a certain base such as labor hours or machine hours.

Machine Hours

A measure of production time, tracking the total hours that machinery is in operation during the manufacturing process.

Fabrication Department

A division within a manufacturing company where raw materials are assembled or processed to create finished goods.

Procurement Activity

The process undertaken by businesses to acquire goods or services, including planning, selection, and purchasing, to meet its requirements.