CS owns 28 supermarkets which sell food and non-food products. Each CS supermarket has a large product portfolio with over 10000 different products. CS uses a number of different promotion methods and pricing strategies. The most effective of these is when CS temporarily reduces the price of a product. Each week 20 different products are selected and their prices reduced. Table 1 shows the sales data from a recent price reduction on bottled water from $0.90 to $0.63. Table 1: Sales data for bottled water Sales in week before price reduction 20000 bottles Sales in week of price reduction 40000 bottles CS has had poor cash flow for the past year and its profit margins are falling. The owners have decided to close one supermarket. They have short-listed two of the least profitable supermarkets and must decide which to close (see Table 2). Table 2: Data to help decide which supermarket to close Supermarket A Supermarket B Sales revenue (2017) $2000000 $1500000 Rent (2017) $400000 $250000 Local unemployment (2017) High Low Local population (households) 150000 80000 Number of years supermarket has been open 4 20 Profit/(Loss) 2015 ($20000) $5000 2016 ($10000) $3000 2017 ($5000) $2000
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