Ratio of the number of stores - Bain Business Case

Bain business case
New answer on Aug 29, 2019
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Marianna asked on Aug 28, 2019

Can someone plese help solve this question? I'm stuck!page11image2959812752https://www.preplounge.com/7dba3997-c4a0-4ae4-bf87-5c1230a0bb6b">

11) What is the ratio of the number of stores operated by RetailCo to the number of stores operated by Player B?

(a) 2:1

(b) 3:1

(c) 7:2

(d) 8:2

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Mauricio replied on Aug 29, 2019

Marianna, you need the sales figures from the next slide where they tell you the sales of each player.

After that the equation is Sales/m2 of sales area = 10,000

Thus your unknown or x would be m2 of sales area. After you solve for x that only equals the sales area. Thus in the case of Retail co. what you've calculated is 80% of the total area. Once you find the 100% of Total area, you know each store of Retail co has 1000 m2. Thus you divide Total area by 1000 m2 to find the number of stores.

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Mauricio on Aug 29, 2019
You do the same w/ the other player and then compare to figure out the ratio