Questions: A complete desktop computer costs 965. A replacement monitor costs 238, a replacement hard drive costs 260, a replacement outer case costs 145, labor to repair it costs 77, and shipping it to and from a repair center costs 41. A full warranty, which covers the entire cost of repairing the computer, is 35% of the purchase price. A limited warranty, which only covers internal parts and labor, costs 11% of the purchase price. If the computer tower is damaged, requiring a new hard drive, new case, labor, and shipping, which warranty will be the better deal, and by how much? a. The limited warranty will end up costing the consumer 190.60 less. b. The limited warranty will end up costing the consumer 45.60 less. c. The full warranty will end up costing the consumer 317.10 less. d. The full warranty will end up costing the consumer 192.40 less. Please select the best answer from the choices provided A B C

A complete desktop computer costs 965. A replacement monitor costs 238, a replacement hard drive costs 260, a replacement outer case costs 145, labor to repair it costs 77, and shipping it to and from a repair center costs 41. A full warranty, which covers the entire cost of repairing the computer, is 35% of the purchase price. A limited warranty, which only covers internal parts and labor, costs 11% of the purchase price. If the computer tower is damaged, requiring a new hard drive, new case, labor, and shipping, which warranty will be the better deal, and by how much?
a. The limited warranty will end up costing the consumer 190.60 less.
b. The limited warranty will end up costing the consumer 45.60 less.
c. The full warranty will end up costing the consumer 317.10 less.
d. The full warranty will end up costing the consumer 192.40 less.

Please select the best answer from the choices provided A B C

Transcript text: A complete desktop computer costs $\$ 965$. A replacement monitor costs $\$ 238$, a replacement hard drive costs $\$ 260$, a replacement outer case costs $\$ 145$, labor to repair it costs $\$ 77$, and shipping it to and from a repair center costs $\$ 41$. A full warranty, which covers the entire cost of repairing the computer, is $35 \%$ of the purchase price. A limited warranty, which only covers internal parts and labor, costs $11 \%$ of the purchase price. If the computer tower is damaged, requiring a new hard drive, new case, labor, and shipping, which warranty will be the better deal, and by how much? a. The limited warranty will end up costing the consumer $\$ 190.60$ less. b. The limited warranty will end up costing the consumer $\$ 45.60$ less. c. The full warranty will end up costing the consumer $\$ 317.10$ less. d. The full warranty will end up costing the consumer $\$ 192.40$ less. Please select the best answer from the choices provided A B C

Solution

Solution Steps

To determine which warranty is the better deal, we need to calculate the total repair cost without a warranty and compare it to the cost of each warranty. The full warranty covers all repair costs, while the limited warranty covers only the internal parts and labor. We will calculate the cost of each warranty and the repair costs they cover, then determine the savings for each option.

Calculate the cost of the full warranty as 35% of the purchase price.
Calculate the cost of the limited warranty as 11% of the purchase price.
Calculate the total repair cost without a warranty (hard drive, case, labor, and shipping).
Determine the cost covered by the limited warranty (hard drive and labor).
Compare the total costs with each warranty to find the savings.

Step 1: Calculate Warranty Costs

The cost of the full warranty is calculated as: \[ \text{Full Warranty Cost} = 0.35 \times 965 = 337.75 \] The cost of the limited warranty is calculated as: \[ \text{Limited Warranty Cost} = 0.11 \times 965 = 106.15 \]

Step 2: Calculate Total Repair Cost

The total repair cost, which includes the replacement hard drive, replacement case, labor, and shipping, is: \[ \text{Total Repair Cost} = 260 + 145 + 77 + 41 = 523 \]

Step 3: Calculate Costs Covered by Limited Warranty

The limited warranty covers the cost of the hard drive and labor: \[ \text{Limited Covered Cost} = 260 + 77 = 337 \]

Step 4: Calculate Total Costs with Each Warranty

The total cost with the full warranty is simply the cost of the warranty: \[ \text{Total Cost with Full Warranty} = 337.75 \] The total cost with the limited warranty is: \[ \text{Total Cost with Limited Warranty} = 106.15 + (523 - 337) = 292.15 \]

Step 5: Calculate Savings

The savings with the full warranty is: \[ \text{Savings with Full Warranty} = 523 - 337.75 = 185.25 \] The savings with the limited warranty is: \[ \text{Savings with Limited Warranty} = 523 - 292.15 = 230.85 \]

Step 6: Determine the Better Deal

Comparing the savings: