Renata Is Trying to Determine Whether the Segments She Is

question 118

Multiple Choice

Renata is trying to determine whether the segments she is considering for her day care center will be profitable. Which of the following factors is least relevant to her 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 able and willing to use day care center services
• D)the average number of school-age siblings of children attending day care
• E)the charge price minus the variable cost of providing service to each child

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Definitions:

Property Damage

Damage to or destruction of physical property or its loss of use.

Revenue Losses

Financial losses incurred by a business, often as a result of decreased sales, lower pricing, or external factors affecting income.

Liability Insurance

Insurance coverage that protects an individual or entity from the risk of being liable for causing harm or damage to others.

Co-Insurance Clause

A provision in an insurance policy that requires the policyholder to bear a portion of the loss in return for a lower premium.