A Recently Graduated Business Student Decided to Open a Small

question 130

Multiple Choice

A recently graduated business student decided to open a small internet cafe serving a variety of unusual non-alcoholic beverages from around the world.He carefully used all the pricing formulas he learned in school and set a goal to break even the first six months and make a moderate profit for the next six months at which time he would review his pricing strategies.Within a week after opening, every seat was filled and he had to replenish his beverage orders several times.At his six month review, he was devastated to find that despite huge sales, he had actually lost money.He realized it wasn't his "math" that was wrong, he had simply failed to include items such as toilet paper, paper towels, hand soap, and trash removal fees in his calculations.These costs should have appeared as __________ in his break-even analysis.

• A)fixed costs
• B)marginal costs
• C)variable costs
• D)overhead costs
• E)ancillary costs

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Definitions:

Independent Variable

A variable that is the presumed cause of a particular result (see dependent variable).

Dependent Variable

The variable that is a presumed effect.

Research Question

A specific query that guides scientific or scholarly investigation, aiming to answerable inquiries based on empirical evidence and reasoned argument.

Content Analysis

A research technique for systematically analyzing the content of communication, such as texts or media, to identify patterns or themes.