Manager of a Small Gasoline Station Observes That While Gasoline

question 7

Multiple Choice

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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Definitions:

True Experimental

A type of experimental design that includes a control group and random assignment to groups to test the effect of an intervention.

Cohort

A group of people born at about the same time and exposed to the same societal events; cohort effects are confounded with age in a cross-sectional study.

Developmental Research

The study of changes in behavior or abilities over time, often focusing on children as they grow and develop.

Society

A group of individuals involved in persistent social interaction, or a large social group sharing the same geographical or social territory, typically subject to the same political authority and dominant cultural expectations.