Recently Graduated Business Student Decided to Open a Small Internet

question 198

Multiple Choice

recently graduated business student decided to open a small Internet café serving a variety of unusual nonalcoholic 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 forgot to include monthly expenses 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) sunk costs

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Definitions:

1710 cm^-1

This refers to the typical absorption band in infrared spectroscopy for carbonyl (C=O) stretching in aldehydes, ketones, and carboxylic acids.

IUPAC

The global organization responsible for developing standardized nomenclature in chemistry and related fields.

Oxobutanenitrile

An organic compound, also known as 3-oxobutanenitrile, characterized by a nitrile group attached to a ketone group in a four-carbon chain.

Compound Shown

A specific molecular structure or substance that is illustrated or referenced in a particular context or study.