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# ustomer-Level Planning7-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 __

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

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