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Target is considering opening mini-Target stores in airports across the United States. Target knows that 25% of the items in its store account for 70% of the store’s sales and expects that this Pareto relationship will hold for the mini-Target stores. The mini-Targets will each carry 50 items, but it’s unknown at this point which 50 items will be stocked. The annual sales of a mini-Target is forecasted to be \$500,000. Assume A items are top 20% of items sold, B items are the next 30% and C items are the bottom 50% of items sold. Turnover is expected to be for A items = 50, B items = 40 and C items = 10   1. The top 20% of items in the min-Target store will account for what percent of sales? A. 63.6% B. 68.7% C. 56.2% D. 42.9%   2. What is the annual item sales expected to be for the worst selling product in the mini-Target store? A. \$145 B. \$1,453 C. \$13,905 D. \$32,781

Target is considering opening mini-Target stores in airports across the United States. Target knows that 25% of the items in its store account for 70% of the store’s sales and expects that this Pareto relationship will hold for the mini-Target stores. The mini-Targets will each carry 50 items, but it’s unknown at this point which 50 items will be stocked. The annual sales of a mini-Target is forecasted to be \$500,000.

Assume A items are top 20% of items sold, B items are the next 30% and C items are the bottom 50% of items sold. Turnover is expected to be for A items = 50, B items = 40 and C items = 10

1. The top 20% of items in the min-Target store will account for what percent of sales?

A. 63.6%

B. 68.7%

C. 56.2%

D. 42.9%

2. What is the annual item sales expected to be for the worst selling product in the mini-Target store?

A. \$145

B. \$1,453

C. \$13,905

D. \$32,781

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