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What is the key factor in determining sales mix if a company has limited resources?
 
a. Total contribution margin
 
b. The amount of fixed costs per unit
 
c. The cost of limited resources
 
d. Contribution margin per unit of limited resource

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Nelly Stracke
Nelly StrackeLv2
17 Apr 2020
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Prompt

You are working for a small business owner selling women’s fitness apparel in a strip mall in a town with a population of 20,000. The space next door will become vacant next year once the lease expires, and the property manager has offered your business the opportunity to lease the space. The apparel company is financially sound, yet not seeing sales growth year over year. The company does not have an online sales platform and depends on repeat customers and foot traffic from the gym nearby. You are tasked with determining if there is a valid opportunity to expand the business to the location next door.

Explain the method you would use to research the viability of the company. What are three potential mistakes to avoid in your research and how can you avoid making those mistakes?

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