Chad Has Calculated the Sales Volume at Which His Lemonade

question 138

Multiple Choice

Chad has calculated the sales volume at which his lemonade stand's costs equal revenue.Over dinner,he announced to his family that he only needed to sell 50 glasses of lemonade at $5 per glass to cover all his costs (lumber and nails for the stand,lemons,sugar,etc. ) .Which important factor has Chad excluded from his analysis?

• A)Fixed and variable cost determination
• B)Consumer demand
• C)Target return pricing
• D)Break-even analysis
• E)Market share

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