Which of the following is the advantage of knowing the magic number?
A) It helps in evaluating if the proposed business can deliver the desired return.
B) It helps in retaining customers.
C) It seeks out customers who are already being serviced by another firm.
D) It helps in making incremental product improvements.

Question

Quizplus · Accepted Answer

Knowing the magic number helps in evaluating if the proposed business can deliver the desired return. The magic number is the minimum number of customers needed to achieve a profitable business. By knowing this, a business owner can determine if their proposed business model is feasible and if they can achieve their desired return on investment.

Which of the Following Is the Advantage of Knowing the Magic