contestada

Lionel's lawn care is a company that maintains residential yards. lionel's cost for his standard package of mowing, edging, and trimming is $15, and he charges $25 for this service. for a total price of $40, lionel will also trim shrubs, a service that adds an additiona l $10 to the total cost of the standard package. should lionel continue to offer the shrub - trimming service?

Respuesta :

Answer: Lionel earns a profit of $5 on his shrub trimming service, he should continue to offer this service.

Lionel is already making a profit of $10 for his standard package. In order to determine if Lionel should offer his shrub trimming business, we need to consider the revenues and costs of his shrub trimming service.

Additional Revenues from shrub-trimming :$15 ($40 - $25)

Additional Cost of shrub trimming             : $10  

Profit earned from shrub trimming               $5  ($15 - $10)


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