Weed Masters provides an annual lawn care service to its customers. Weed Masters has 400 customers and charges $1,000 per annual lawn service. The company offers an 8 percent discount if customers pay in full at the start of the season. If every customer pays in full at the start of the season, Weed Masters' total revenue is _________ .

Question

Quizplus · Accepted Answer

The total revenue can be calculated by multiplying the number of customers by the price per service.

Total revenue = 400 customers x $1,000 per service = $400,000

However, if every customer pays in full at the start of the season, they receive an 8 percent discount, which would be a loss of revenue for Weed Masters.

Discount = 8% x ($400,000) = $32,000

Subtracting the discount from the total revenue, we get:

Total revenue with discount = $400,000 - $32,000 = $368,000

Therefore, the answer is B) $368,000.

Weed Masters Provides an Annual Lawn Care Service to Its