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) consumer demand
C) target return pricing
D) break-even analysis
E) market share

Question

Quizplus · Accepted Answer

The analyst has only considered the costs and revenue of producing and selling bakers' racks, but has not taken into account the demand for the product in the market. Without considering consumer demand, it is difficult to determine whether selling 13,000 racks is feasible or not.

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