A clothing chain is considering two different locations for a new retail outlet. The organization has identified
Question:
A clothing chain is considering two different locations for a new retail outlet. The organization has identified the four factors listed in the following table as the basis for evaluation, and it has assigned weights as shown. The manager has rated each location on each factor, on a 100-point basis (higher scores are better), as shown under the respective columns for Barclay and Chester.
Factor | Factor Description | Weight | Barclay | Chester |
1 | Average community income | 0.40 | 95 | 70 |
2 | Community growth potential | 0.35 | 70 | 80 |
3 | Availability of public transportation | 0.15 | 45 | 90 |
4 | Labor cost | 0.10 | 80 | 60 |
a. Calculate the composite score for each alternative location.
b. Which site should be chosen?
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young