Question: A retail chain operates five stores in different locations. The chain has collected the following information from each of its stores last month (see the
A retail chain operates five stores in different locations. The chain has collected the following information from each of its stores last month (see the table below). Additionally, the chain has indicated that: (1) $50,000 in monthly corporate overhead (fixed cost) should be distributed evenly among the five stores (i.e., $10,000 each); (2) Labor cost per employee a month = $15,000; (3) Monthly rent cost per square foot of floor area = $5. Store Sales Revenue ($) Number of Employees Floor Area (sq. ft) Inventory Cost ($) Store 1 $102,000 4 1900 $25,000 Store 2 $120,000 4 1800 $25,000 Store 3 $150,000 6 2200 $35,000 Store 4 $128,000 6 2600 $18,000 Store 5 $130,000 4 1900 $32,000 Q1 (1 pts): Alice, the HR manager, is interested in evaluating labor productivity across stores for last month. Labor productivity is defined by Alice, using sales revenue as output and the number of employees as input. Identify the store with the best labor productivity and calculate its labor productivity (rounded to five decimal places if not a whole number)
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