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

Question

Quizplus · Accepted Answer

The average number of school-age siblings of children attending day care is least relevant to Renata's analysis because it does not directly affect the profitability of the day care center. It may be relevant to consider for other reasons, such as determining the transportation needs of the children, but it does not impact the financial success of the business. The other factors listed are more directly related to profitability, such as the number of potential customers, fixed costs, demand for services, and pricing strategy.

Renata Is Trying to Determine Whether the Segments She Is