Question

Average Household Income in Desertville



Your research tells you that households earning $55,000 or more are most likely to be interested in a new shoe store.

Households earning $25,000 or more are likely to visit coffee shops.


would have a larger potential customer base.


is geared toward individuals with more disposable income.

Answer 1

Short answers:
- The coffee shop would have the larger potential customer base (it draws from households earning ≥ $25,000).
- The shoe store is geared toward individuals with more disposable income (it targets households earning ≥ $55,000).

Why: a $25k threshold includes all households earning $25k and up, which is a superset of those earning $55k and up, so more households qualify as potential coffee-shop customers. Households at $55k+ typically have more discretionary spending, so they’re a better fit for higher‑ticket purchases like new shoes.

Caveats and next steps:
- The actual sizes depend on Desertville’s income distribution. If you want precise counts, provide (or I can pull) the percent or number of households in each income bracket and I’ll compute the potential customer counts.
- Also consider other factors beyond income: age, household size, local competition, foot traffic, price points, and preferences. If you share Desertville’s household totals or income breakdown, I can run numbers and produce a short comparison.