The Manager of a Small Gasoline Station Observes That While

question 226

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 - an oil change for $10 with a coupon mailed to 800 households in a 2-mile radius from his station. The $10 will just cover the costs of the oil change, and the cost of printing and mailing is $1,000. He hopes the promotion will increase regular maintenance service calls, which averages to $40. (Materials and labour per job cost $30.) If two hundred customers used the coupon, what will be the total cost of the promotion? (Disregard any opportunity costs.)

• A)$1200
• B)$800
• C)$200
• D)$1000

Identify the benefits of dynamic over static testing approaches.

Understand the scope and limitations of various intelligence assessments.

Acknowledge the influence of sociocultural factors on test performance and its interpretation.

Grasp the heritability and environmental impacts on intelligence.

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Definitions:

Accrual Accounting

An accounting method that records revenues and expenses when they are incurred, regardless of when cash transactions occur.

Discounted Cash Flow Analysis

A financial model used to estimate the value of an investment based on its expected future cash flows, adjusted for the time value of money.

Average Cost of Capital

A company's average cost of funds (both debt and equity), representing the return that investors expect for providing capital.

Profitability Index

A calculation used to assess the profitability and efficiency of an investment or project, computed as the present value of future cash flows divided by the initial investment cost.