A difficulty in using sales per square foot as a performance measure for a rapidly growing retailer is that it ________.
A) will underestimate performance since a large number of stores will not be open for an entire year
B) will overestimate performance since a large number of stores will not be open for an entire year
C) does not take into account the different performance levels of older versus newer stores
D) does not take into account the different performance levels of existing versus acquired stores

Question

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CDSales per square foot can underestimate performance for a rapidly growing retailer because many new stores may not be open for the entire year, skewing the average downward. It also fails to differentiate between the performance of older versus newer stores and existing versus acquired stores, which can have significantly different sales dynamics and efficiencies.

A Difficulty in Using Sales Per Square Foot as a Performance