Question

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?

Answer 1

Lionel should continue to offer the shrub-trimming service because it generates a profit of $5.

Step-by-step explanation:

Lionel's lawn care company charges $15 for their standard package of mowing, edging, and trimming, and they charge $25 for this service. For a total price of $40, Lionel will also trim shrubs, which adds an additional $10 to the total cost of the standard package.

To determine whether Lionel should continue to offer the shrub-trimming service, we need to compare the cost of offering the service with the additional revenue it generates. In this case, the cost of offering the service is $10, while the revenue generated from offering the service is $15 (the additional cost of $10 + the difference in price between the standard package and the total price with shrub trimming, which is $25 - $40). Therefore, Lionel should continue to offer the shrub-trimming service because it generates a profit of $5.

Answer 2

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)