The Manager of a Small Gasoline Station Observes That While

Multiple Choice

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) $1200
B) $800
C) $200
D) $1000