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
Correct Answer:
Verified
Q228: Q229: Marginal analysis might take the form of Q230: reduction from the list price that a Q231: successive price cutting by competitors to increase![]()