[naomii]

yay!!! my wacc was also 11% lol

[naomii]

4for 4ii) i said it was incorrect to use rev and profit per sq meter mainly because the small stores were located in densely populated areas where they were guarenteed high sales and the big stores were in the outer city areas where the population was small and they would get less sales per sq meter.
but i also calculated variences,,, i foung that the larger stores ( which had less rev and profit per sq meter) exceeded budgeted expectations by 2% but the smaller stores only exceeded by 1%
This mean that despite the fact that the larger stores had less revenue per sq meter they were doing better than the smaller stores..
using revenue and profit per sq meter would mean rewarding managers for effort which they really didnt make…

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