The population of a city is 230,000 and its annual per person expenditure on athletic shoes is $45.If there are 64,688 square feet of retail space used to sell athletic shoes in this city,its index of retail saturation is ____.
A)12.65
B)79.01
C)159.99
D)1437.51

Question

Quizplus · Accepted Answer

The index of retail saturation (IRS) is calculated by dividing the total expenditure on a product by the retail space devoted to the product.

Total expenditure on athletic shoes in the city = Population x Expenditure per person = 230,000 x 45 = $10,350,000

IRS = Total Expenditure on Athletic Shoes / Retail Space 
      = $10,350,000 / 64,688 square feet 
      = $159.99 per square foot

Therefore, the IRS for athletic shoes in this city is $159.99 per square foot, which is closest to choice C (159.99).

The Population of a City Is 230,000 and Its Annual