A Dry Cleaning Business Offers a Pick-Up and Delivery Service

question 91

Multiple Choice

A dry cleaning business offers a pick-up and delivery service for a 10 percent surcharge.Management believes 60 percent of the existing customers will take advantage of this service.They are also considering offering customers the option of opening an account and receiving monthly bills.They believe 60 percent of customers (regardless of whether or not they use the pick-up service) will use the account service.If the two services are introduced to the market,what is the probability that a customer uses only one of these services?

• A)0.40
• B)0.60
• C)0.48
• D)0.24
• E)None of the above

---

Definitions:

Segmented Income Statement

An income statement broken down into segments or divisions of a company, showing financial performance for each separately.

Electronic Calculators

Electronic devices used for performing mathematical operations, ranging from basic to complex calculations.

Product Line

A group of related products produced by a company, often catering to a specific market or segment.

Unit Product Cost

The total expense involved in manufacturing a single product unit, encompassing direct materials, direct labor, and apportioned overhead costs.