Customer $3$

When the third customer declined the service plan, Alan again said, "You know, these new $1080$p sets have a lot of pixels. Sometimes one freezes up or goes dark$$makes it kind of irritating to watch, especially with sports. You said you'd be watching a lot of sports on this set? The extended service plan would fix or replace your TV if anything like that happened."

This customer then asked him, "Does that happen very often?"

Alan replied, "I don't know. I just started working here."

In this scenario, the store sells a service plan for about $$100$ on a $$900HDTV.$ On average, it pays out $$20$ for actual service and replacements and keeps an average of $$80.$ Is the $$100$ price appropriate?

Building on the example in the first question, what is the highest charge that would be appropriate? Circle your answer below.

$$20$ $$40$ $$60$ $$80$ $$100$ $$125$ $$150$ $$200$ $$250$

As Much as People Will Pay

Is Alan's statement to Customer $1$ ethical?

Is Alan's statement to Customer $2$ ethical?

Is Alan's statement to Customer $3$ ethical?