Ceibs Calculation

P15-7

a. $52,000+$19,000-$67,000=$4,000

b. Dr. Notes Payable 20,000

Cr. Notes Receivable 20,000

c. $67,000-X*$50,000=$50,000

➔ X=34%

d. $30,000/$2,000=15 years

Target market segmentation

-Low- middle class consumers including (employee, university students) prefer healthy diet together with fast food

Our target segmentation is Low- middle class consumers including (employee, university students) who prefer healthy diet together with fast food.

Low &middle class consist 96% of total America population which means there is large market here. Low &middle class can be divided by different dimensions.

Dimension1. We can divide our target consumers into three parts, who prefer healthy diet, fast food and food fast.

● Prefer healthy diet.

Firstly, target consumers are those prefer healthy diet.

There is large number of obesity in USA; obesity in the United States has been increasingly cited as a major health issue in recent decades, so large variety of consumers will choose the healthy diet.

Obesity rates in the United States are among the highest in the world. Obesity has led to over 120,000 preventable deaths each year in the United States. An obese person in America is likely to incur $1,429 more in medical expenses annually. Approximately $147 billion is spent in added medical expenses per year within the United States. The organization estimates that 3/4 of the American population will likely be overweight or obese by 2020. The latest figures from the CDC show that more than one-third (34.9% or 78.6 million) of U.S. adults are obese and 17% for children and adolescents aged 2–19 years.

Besides that, traditional fast food has been cited as a contributing factor to obesity in the United States by various sources over the years. These fast food items are also relatively inexpensive and available at fast food chains across the country. Consumption of foods exceedingly high in fat calories can lead to obesity. Many menu items at fast food establishments do not fulfill basic nutritional requirements of a healthy meal.

In a 2010 report by the Rudd Center for Food Policy it was noted that less than 1% of children's meals combinations met nutrition standards recommended by experts. Meals provided in public schools are a primary example of developing poor nutritional choices as the foods offered are not as healthy as they are claimed to be. Some school system provides children with these popular foods that are very high in fats and calories.

Lower-income Americans report eating healthily more frequently than do middle- and upper-income Americans, which is consistent with the pattern seen in prior years. Sixty-four percent of lower-income Americans said they ate healthily all day yesterday in 2013, compared with 61.8% of middle-income Americans and 62.7% of upper-income Americans.

● Prefer fast food

Secondly, target consumers are those prefer fast food. American goes to the fast food restaurant frequently. Eight in 10 Americans report eating at fast-food restaurants at least monthly, with almost half saying they eat fast food at least weekly. Only 4% say they never eat at fast-food restaurants.

● Prefer food fast

Lastly, Americans Love Food Fast, More Than Fast Food."Convenience is the driving force of our dietary change. Make no mistake about that," said NPD Group Chief Independent Analyst Harry Balzer on "Big Data Download." "We always want things to be convenient. Now the question is will it be healthy as well." Fast food chains offering salads help Americans make meal decisions both quickly and healthy.