In preparing for an audit of the footwear division of a major retail organization, an internal auditor gathered the following information about the organization's stores:
In addition to labor costs, the other costs associated with each store are leasing and maintenance expenses. Which of the following is a valid conclusion?
The data indicates that as the size of the store increases (measured by average square feet per store), the average sales per store also increase. This can be observed by comparing the regions: the Northeast Region, with the largest average square feet per store (2200), has the highest average sales per store ($840,000), while the Central Region, with the smallest average square feet per store (1550), has the lowest average sales per store ($630,000). This relationship supports the conclusion that sales per store are directly related to the size of the store.
Can someone elaborate with the calculation?
The larger the average square feet per store, the higher the average sales per store (but not proportionally).
840 - 220 760- 1850 736- 1800 630 - 1550