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Bumek
2 months ago
8

​DeShawn's Detailing is a service that details cars at the​ customers' homes or places of work.​ DeShawn's cost for a basic deta

iling package is​ $40, and he charges​ $75 for this service. For a total price of​ $90, DeShawn will also detail the​ car's engine, a service that adds an additional​ $20 to the total cost of the package. Should DeShawn continue to offer the engine detailing​ service?
Business
1 answer:
Katen [3.5K]2 months ago
8 0

Answer:

DeShawn should not continue offering the engine detailing service

Explanation:

Given data

Cost = $40

Charge = $75

Total price = $90

Additional charges amount to $20

To determine

Whether DeShawn should proceed with the offer

Solution

Here, we know DeShawn's marginal benefit is Marginal benefit = total price - charge

Marginal benefit = 90 - 75

Marginal benefit = $15

Given that the additional charge is $20

Thus,

the marginal cost exceeds the marginal revenue

Hence, DeShawn should not continue the engine detailing service

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Mariulka [3825]

Answer:

0.45

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Answer and Explanation:

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