Asked by Brianna Baldwin-Hayes on Jun 06, 2024

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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

Fixed Costs

Those costs that remain essentially at the same level, regardless of any changes in the volume of production.

Variable Cost

Expenses that change in proportion to the activity of a business, such as costs for raw materials or production.

Charge Price

The action of setting a specific amount of money as the cost for a product or service.

  • Learn how to evaluate the attractiveness of different market segments.
  • Understand the principles of market reach and the factors influencing it.
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SH
Stacy HarrisJun 08, 2024
Final Answer :
D
Explanation :
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.