Question: Steven was looking back on his multiple years in the grocery business, realizing how much had changed in his company's customer service offerings. Originally, customers'
Steven was looking back on his multiple years in the grocery business, realizing how much had changed in his company's customer service offerings. Originally, customers' only option was to shop instore for themselves. The store now offered online shopping with instore pickup curbside delivery, and direct shipping to customers' homes. The industry had come a long way, but his business profits hadn't kept pace. His aim was to calculate profitability by customers using different shopping approaches, wondering if the company needed to change pricing for the different services.
His team gathered the following information. The three costs listed below COGS are directly traceable to the shopping approaches, with amounts listed as appropriate.
tableTotal,Customer Shopping MethodtableInStoreShoppingOnline ShoppingInStore pickupCurbside pickupDeliver to homeSales$$$$$Cost of goods sold,PicknPack costs,Temporary storage costs,Customer shipping costs,General and administrative costs,Selling expenses,
a
For each category of service offering determine the gross margin and gross margin percentage. Rank the different categories by their gross margin percentages. Round gross margin percentage to decimal places, eg
tableInstore Shopping,Instore PickupCurbside PickupGross margin,$$$$tableGrossmarginpercentageRank
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