Kesterson2

Kesterson2 - Name: _Kesterson_ Sec _2_ 15 pts. Due. Feb 11,...

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Name: _Kesterson_____ Sec __2__ Due. Feb 11, Midnight 15 pts. Assignment 2.1  QUESTIONS 1. Why did a modest increase in market coverage have such a significant influence on  store performance?  There will be an increase in demand due to the increase in market coverage. 2. Should your business attempt to appeal more to college students and faculty?  Why or  why not?     Yes, because that is where the increase is coming from and it is important to target  towards the people available. 3. Do you think the owners are correct in their assumption that the increase in the  student population will not change shopping frequency, closure and average  transaction size? Why? Baseline Model Improved Mkt Coverage market coverage 8510 8725 penetration level 0.65 0.65 avg shopping frequency 7.8 7.8 traffic 43146 44236 closure  0.62 0.62 transactions 26750 27426 avg transaction size $59.44 $59.44 net sales $1,590,040 $1,630,211 cost of mdse sold $985,825 $1,010,731 gross margin $604,215 $619,480 variable op cost $178,084 $182,584 fixed op cost $378,600 $378,600 total op cost $556,684 $561,184 net profit $47,531 $58,297 net profit margin 2.99% 3.58% total assets $685,100 $685,100 asset turnover 2.321 2.380 return on assets 6.94% 8.51%
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Yes, because students are less likely to increase transaction size due to their lack of  income.  4. What specific costs will increase if you begin to serve more college customers than in  the past? Why? Store hours and employee pay will increase your costs because if your target towards  college students, you will have to change operating procedures and times.
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  Name __Kesterson______ Sec. ___2_ Feb. 11, Midnight 15 pts. Assignment 2.2
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This essay was uploaded on 04/07/2008 for the course MKTG 361 taught by Professor Wachter during the Spring '08 term at Ole Miss.

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Kesterson2 - Name: _Kesterson_ Sec _2_ 15 pts. Due. Feb 11,...

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