Once we calculate the average number of customers (Total store sales/average spending per person) we can double the customer number to get the no. of customers in 5 years, followed by multiplying it by 20 to get the total store sales after 5 years and dividing it by (2.5*no. of stores presently) to the sales/store
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Why don't we differentiate between fixed and variable costs ?
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Can't we directly divide the total store sales with average expense per person to determine the number of customers ?
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Top answer
Luca
on Dec 23, 2019
Coach
BCG |NASA | SDA Bocconi & Cattolica partner | GMAT expert 780/800 score | 200+ students coached
Hello Ravi,
You are right, you can obtain the same result using your way.
You will find a different number just because in the case resolution the intermediate results are rounded.
Hope it helps,
Luca
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