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

Question

Quizplus · Accepted Answer

The analyst has only considered the company's costs and revenue without taking into account consumer demand. Consumer demand is a critical factor in determining sales volume, and without considering it, the analysis may not accurately reflect the actual sales volume required to break even.

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