If 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)3.56
B)12.65
C)159.99
D)330.06

Question

Quizplus · Accepted Answer

First, we need to calculate the total annual expenditure on athletic shoes in the city:

Total annual expenditure = Population x Annual per person expenditure 
Total annual expenditure = 230,000 x $45 = $10,350,000

Next, we need to calculate the retail sales per square foot:

Retail sales per square foot = Total annual expenditure / Retail space 
Retail sales per square foot = $10,350,000 / 64,688 = $159.99

Finally, we can calculate the index of retail saturation:

Index of retail saturation = Retail sales per square foot / National average retail sales per square foot 
Index of retail saturation = $159.99 / $50 (assumed national average) = 3.2

So the closest answer choice is C) 159.99 (rounded to the nearest cent).

If the Population of a City Is 230,000 and Its