An Analyst at Onyx,a Company That Makes Bakers' Racks,has Calculated

question 94

Multiple Choice

An analyst at Onyx,a company that makes bakers' racks,has calculated the sales volume at which the company's costs equal revenue.This analyst announced at the company's quarterly sales meeting that 13,000 racks at an average cost of $150 must be sold to retail stores during the next quarter to reach this point.Which important factor has been excluded from his analysis?

• A) fixed and variable cost determination
• B) break-even analysis
• C) market share
• D) consumer demand

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Definitions:

Monthly

Occurring, produced, or published every month.

Petty Cash

A small amount of cash available for small business expenses used for postage stamps, inexpensive office supplies, and small charitable donations, usually maintained in a locked container.

Depleted

Consumed, emptied, exhausted.

Company Email Address

An email account provided by an employer to their employees for professional use, associated with the organization’s domain name.