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? a. The limited warranty will end up costing the consumer $189 less. b. The limited warranty will end up costing the consumer $363 less. c. The full warranty will end up costing the consumer $553 less. d. The full warranty will end up costing the consumer $174 less.
Question
Answer:
The better deal is the Full Warranty, by approximately 174 dollars. To solve the cost of the full warranty, simply multiply 30 percent times the cost of the washer/dryer.30 x 1,179 = 353.70. You do not need to add anything to this because the warranty covers the extra costs. To solve for the cost of the limited warranty, multiply 14 percent times the cost of the washer/dryer, plus the cost of the new parts and the repair center costs (the warranty only covers the labor repair costs): (.14 x 1,179) + 211 + 152 --> 165.06 + 211 + 152 = 528.06. The full warranty is clearly cheaper. To figure out by how much, simply subtract the full warranty from the limited warranty: 528.06 - 353.70 = 174.36. To round to the nearest number, take off the decimal: 174. So that means your answer is D hope this helps.
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10 months ago
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