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  3. Can't we directly divide the total store sales with average expense per person to determine the number of customers ? 3
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Question on the case: SuperBurger

Can't we directly divide the total store sales with average expense per person to determine the number of customers ?

Case Calculations case question Mergers&Acquisitions SuperBurger

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

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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 New answer on Dec 23, 2019
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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

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

2 Book a coaching with Luca

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