Pit Stop's "Young Families" customers generate annual margin for the company of $306 each. These customers...
Pit Stop's "Young Families" customers generate annual margin for the company of $306 each. These customers order from the company an average of 1.9 times per year, and they order merchandise where contribution margin as a percent of revenue averages 45%. What is the average order size in dollars for one of these "Young Families" customers? (Rounding: nearest penny.)
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Homework Answers
Solution:
Annual margin per customer = $306
Nos of time customer orders in a year = 1.9 times
Average Contribution margin per order per customer = $306 / 1.9 = $161.0526
Average order size in dollar = Average contribution margin per order / Contribution margin ratio
= $161.0526/45% = $357.89
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corporate diversification strategy, identify and discuss the top
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What are the five major components of “CEMEX
Way” and why has this approach been so successful in
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management?
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