A dry cleaning business offers a pick-up and delivery service for a 10 percent surcharge. Management believes 60 percent of customers will take advantage of this service
They are also considering offering customers the option of opening an account and receiving monthly bills. They believe 60 percent of their customers (regardless of whether or not they use the pick-up service) will use the account service. If the two services are introduced to the market, what is the probability a customer uses both services?
A) 0.12
B) 0.60
C) 0.36
D) 0.24
E) None of the above
C
You might also like to view...
The Reagan Corporation issues 1,000, 10-year, 8%, $1,000 bonds dated January 1, 2009, at 95. The journal entry to record the issuance will show a
A) credit to Discount on Bonds Payable for $50,000. B) debit to Cash of $1,000,000. C) credit to Bonds Payable for $1,000,000. D) credit to Cash for $950,000.
Reinvestment assumptions are different under each method of ranking capital projects
Indicate whether the statement is true or false
When a firm does not have core competencies in an area needed to produce certain products, it may choose to rely upon a(n)?
a. Dependent manufacturer b. Allied manufacturer c. Contract manufacturer d. Conscripted manufacturer
The amount by which a department's sales exceed its direct expenses is:
A. Net sales. B. Contribution margin. C. Gross profit. D. Departmental contribution to overhead. E. Departmental profit.