Below you will find the previous types of problems repeated to insure your understanding:

Sales $450,000

Handling Costs 2% of Sales

Occupancy Cost $5 a sq.'

Sq.' devoted to line 500 sq.'

Markup 60%

Average Inventory at Retail $185,000

Industry Average Sales per sq.' = $200

1-4. Based on the above data calculate the following: R.O.I., Net Space Yield, Space, Productivity Ratio, and Stock Turn.

5. Calculate Buying Power Index (BPI) for a region that has .2% of the U.S. income, .1% of the U.S. retail sales, and .2% of the U.S. population.

6. Calculate the index of retail saturation for a shoe store:

Average Expenditure $52

# of customer 2,000

Sq.' of proposal store 3,000

Existing competition: Store 1 2,000 sq.'

Store 2 3,000 sq.'

Store 3 500 sq.'

7. Your company sells cars and wants to know the point of indifference between Sioux City and Fremont. The major road between the 2 cities is Hwy 77. The 2 cities are 105 miles apart. Fremont's population is 40,000 and Sioux City's population is 60,000.

8. Your company is trying to select a location for a new retail outlet selling fishing equipment. Site A would have 500 sq.' devoted to fishing equipment and consumers are 10 minutes away, while site B would have 600 sq.' and consumers are 15 minutes away and site C would have 400 sq.' devoted to the line and consumers live 20 minutes away. The effect of the travel time is 2.