Concept explainers
Retail Merchandising A store planner uses the following formula to determine how much space to give to a particular department:
where A is the amount of space in square feet, V is the projected annual sales volume, and S is the estimated sales per square foot.
If the shoe department of a store is projected to have annual sales of $880,000, and the estimated sales per square foot is $760 per year, how much space should be given to the department? (Round to the nearest ten square feet.)
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