WireOne makes mobile telephones. It currently has plans to manufacture the AZZ01 model. By redesigning the case at a cost of £95,000, it estimates that it can cut the repair cost of warranty work by half when defective units are returned. WireOne expects to sell 300,000 AZZ01s in the first year. Two percent of AZZ01s are expected to require warranty work if the case is not redesigned. The cost of repairing and returning a defective telephone is £33.50.

Should WireOne redesign the case of the AZZ01?