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 __