SOLUTION: A service that repairs televisions sells maintenance agreements for $11 a year. The average cost for repairing a television is $34 and 5 in every 100 people who purchase maintenanc

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Question 172628This question is from textbook Thinking Mathematically
: A service that repairs televisions sells maintenance agreements for $11 a year. The average cost for repairing a television is $34 and 5 in every 100 people who purchase maintenance agreements have televisions that require repair. Find the service's expected profit per maintenance agreement.
Where to begin.... can't really figure this one out anyone to help please! This question is from textbook Thinking Mathematically

Found 2 solutions by Mathtut, JoelSchwartz:
Answer by Mathtut(3670) About Me  (Show Source):
You can put this solution on YOUR website!
let x be the number of maintenance agreements and P=profit
:
P=11(x))-34(1/20)(x)
:
P=11x-17/10(x)
:
P=97/10(x) so for 100 contracts
:
P=97(100)/10=$970 bucks

Answer by JoelSchwartz(130) About Me  (Show Source):
You can put this solution on YOUR website!
p=profit
s=amount of money received from the customer.
c=cost
p=s-c
s=11*100
11 dollars per agreement times 100 agreements.
c=34*5
It costs 34 dollars per television fixed. Out of 100 agreements 5 of them get repaired. Therefore the cost is 34 times five.
p=1100-170
p=930
This is the profit for one hundred agreements. To get the profit per agreement i would divide by 100. The profit per agreement is $9.3