Applies pinstripes to vehicles

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Reference no: EM13744082

Allison's Auto Art is a company that applies pinstripes to vehicles. Allison's cost for a basic 1-color pinstriping job is $35, and she charges $95 for this service. For a total price of $175, Allison will apply a fancier 3-color pinstripe application to an automobile, a service that adds an additional $40 to the total cost of the package. Should Allison continue to offer the 3-color pinstripe application?

yes, she still makes a profit by selling the 3-color application.

yes, but only if she lowers the price of the 1-color application

no, her marginal benefit is less than her marginal cost

More information is needed for Allison to make this decision.

Reference no: EM13744082

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