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, a $20 off coupon for an oil change mailed to 800 households within a two-mile radius. The cost of printing and mailing is $1,000. The normal cost of an oil change is $40. Materials and labor per oil change costs $15. If 200 customers use the coupon, what will be the total profit of the promotion based on the profit equation?

A) ($4,000)
B) ($1,000)
C) $0
D) $1,000
E) $4,000