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

Question

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

Answer 1

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

Answer 2

Hi Anonymous, To answer your questions, I will first describe the theoretical correct valuation approach, and then... (read entire answer)

Hi Anonymous, To answer your questions, I will first describe the theoretical correct valuation approach, and then the simplified approach you can normally apply in consulting... (read entire answer)

Answer 3

Hi Andreia, this is definitely a case where you can apply the rule of 72 to get a rounded answer: Step 1: find... (read entire answer)

Hi Andreia, this is definitely a case where you can apply the rule of 72 to get a rounded answer: Step 1: find the amount of time the initial capital would double. Dividin... (read entire answer)

Answer 4

Hello Sudipto, the first part of this case would be only about crunching the numbers, then you will need to add som... (read entire answer)

Hello Sudipto, the first part of this case would be only about crunching the numbers, then you will need to add some hypothesis and finally make some considerations. ----&gt... (read entire answer)