Question

A service that repairs air conditioners sells maintenance agreements for $80 a year. The average cost for repairing an air conditioner is $350. If 1% of all people who purchase these maintenance agreements have

Answer 1

$76.5

Explanation:

Note: Question is incomplete. The missing part is " air conditioner that require repair, then what is the service's expected profit per maintenance agreement?"

Given that The selling price of a maintenance agreement is = $80

When Expected repairing cost = 0.01 * 350 = $3.5

Hence, the service expected profit per maintenance agreement = $80 - $3.5

=$76.5