Manager of a Small Gasoline Station Observes That While Gasoline

question 331

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 cost $15.How many additional maintenance service jobs must result for the promotion to break even?

• A) 25 jobs
• B) 40 jobs
• C) 50 jobs
• D) 67 jobs
• E) 200 jobs

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Definitions:

Organizational Strategy

A structured plan detailing how a company intends to deploy resources and capabilities to secure a competitive advantage.

Human Capital

The skills, knowledge, and experience possessed by an individual or population, viewed as a factor of production contributing to economic value.

Knowledge

Information, understanding, or skill obtained through experience or education.

Commitment

The level of dedication an individual has towards his or her job, organization, or career path.