View the step-by-step solution to:


ustomer-Level Planning

7-Eleven operates a number of convenience stores worldwide. Assume that an analysis

of operating costs, customer sales, and customer patronage reveals the following:

Fixed costs per store $80,000/yearVariable cost ratio 0.80 Average sale per customer visit $17.00 Average customer visits per week 1.50 Customers as portion of city population 0.05

Determine the city population required for a single 7-Eleven to earn an annual profit of $40,000.

Round annual contribution per customer to one decimal place.

For customers required for desired profit and required population, round up to the nearest whole number (i.e., 325.333 customers = 326)

Annual contribution per customer ___

Customers required for desired profit ___

Required population __

Top Answer

Annual contribution per customer $265.2... View the full answer


Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question