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.)

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.)

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.

$200


B.

$800


C.

$1000


D.

$1200



Answer: C


Learn More :