The Manager of a Small Gasoline Station Observes That While

question 174

Multiple Choice

The manager of a small gasoline station observes that while gasoline sales have been steady,the service side of the business has fallen off,and mechanics are often idle.He decides to offer a promotion-a $20 off coupon for an oil change that is to be mailed to 800 households within a two-mile radius from the gas station.The cost of printing and mailing is $1,000.The normal cost of an oil change is $40.Materials and labor per oil change costs $15.If 200 customers use the coupon,what will be the total profit of the promotion based on the profit equation?

• A)($4,000)
• B)($1,000)
• C)$0
• D)$1,000
• E)$4,000

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