Paula is trying to determine whether the segments she is considering for her day care center will be profitable.Which of the following will not specifically help her in this analysis?
A) The number of children needing day care in the immediate area.
B) The fixed costs of operating the center.
C) The percentage of parents in the area who can both afford to send their child or children to day care and who are willing to do so.
D) The average number of school-age children in families sending a child to the day care center.
E) The price she would charge minus the variable cost of providing service to each child.

Question

Quizplus · Accepted Answer

The average number of school-age children in families sending a child to the day care center is not relevant to determining whether the segments will be profitable, as it does not directly affect costs or revenue. The other choices all provide important information related to profitability.

Paula Is Trying to Determine Whether the Segments She Is