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Adam will spend $4,000 to rent a booth at the town's annual county fair to promote his new Sandwich Shoppe. In previous years, the average food booth at the fair served 400 customers. Thus, in order to cover his costs, Adam has calculated that he must sell 400 sandwiches for $10 each.
Which of the following statements casts the most doubt on Adam's chances of breaking even at the county fair?
A. Adam should not limit himself to 400 sandwiches; he should be prepared to sell more.
B. Adam has not factored in the costs of raw materials or labor in calculating the amount of revenue he needs to generate to break even.
C. If booths in previous years averaged 400 customers, that means some booths served more than 400 and some served fewer than 400.
D. Many people prefer other types of food to sandwiches.
E. If Adam shares his booth, and the cost of the rental, with a complementary business, he will not have to sell as many sandwiches to break even.
OA : B
Source: GMATPrep
Which of the following statements casts the most doubt on Adam's chances of breaking even at the county fair?
A. Adam should not limit himself to 400 sandwiches; he should be prepared to sell more.
B. Adam has not factored in the costs of raw materials or labor in calculating the amount of revenue he needs to generate to break even.
C. If booths in previous years averaged 400 customers, that means some booths served more than 400 and some served fewer than 400.
D. Many people prefer other types of food to sandwiches.
E. If Adam shares his booth, and the cost of the rental, with a complementary business, he will not have to sell as many sandwiches to break even.
OA : B
Source: GMATPrep
