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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

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