Paula is trying to determine whether the segments she is considering for her day care center will be profitable.Which of the following will not specifically help her in this 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 in the area who can both afford to send their child or children to day care and who are willing to do so
D) the average number of school-age children in families sending a child to the day care center
E) the price she would charge minus the variable cost of providing service to each child

Question

Quizplus · Accepted Answer

The average number of school-age children in families sending a child to the day care center is not directly related to the profitability of the segments being considered. The other options are all factors that could impact profitability, such as the demand for day care in the area and the cost of operating the center.

Paula Is Trying to Determine Whether the Segments She Is