Target is considering opening mini-Target stores in airports across the United States. Target knows that 25% of the items in its store account for 70% of the store's sales and expects that this Pareto relationship will hold for the mini-Target stores. The mini-Targets will each carry 50 items, but it's unknown at this point which 50 items will be stocked. The annual sales of a mini-Target is forecasted to be $500,000.

Assume A items are top 20% of items sold, B items are the next 30% and C items are the bottom 50% of items sold. Turnover is expected to be for A items = 50, B items = 40 and C items = 10.

1. The top 20% of items in the min-Target store will account for what percent of sales?

- 42.9%

- 56.2%

- 68.7%

- 63.6%

2. What is the annual item sales expected to be for the 25th best selling product in the mini-Target store?

- $113

- $4,510

- $437,500

- $76,350

Answer rating: 100% (QA)

Answer 1 option c 687 Explanation The top 20 of ite... View the full answer