Question

A combination washer/dryer costs $1,179. New parts for this washer/dryer cost $211, labor to repair it costs $553, and shipping it to and from a repair center costs $152. A full warranty, which covers all aspects of repairing the washer/dryer, costs 30% of the price of the washer/dryer. A limited warranty, which only covers labor costs, only costs 14% of the price of the washer/dryer. Assuming that the washer/dryer needs repairs which include parts, labor, and shipping, which warranty is the better deal, and by how much, rounded to the nearest dollar?

Answer 1

Answer:

D. $174 less

Explanation:

Answer 2

The warranty that is the better deal is: The full warranty will end up costing the consumer $174 less.

Cost of full warranty:

Cost of full warranty=30%×$1,179

Cost of full warranty=$353.70

Cost of  limited warranty:

Cost of  limited warranty=(14% x $1,179) + $211 + $152

Cost of  limited warranty=$165.06 +$211 +$152

Cost of  limited warranty=$528.06

Difference

Warranty=$528.06-$353.70

Warranty=$174.36

Warranty=$174 (rounded)

Inconclusion the full warranty is a better because it is cheaper as it will end up costing the consumer $174 less.

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