Question: The copier in the business building usually breaks down five times per month, necessitating a service call that costs on average $ 5 5 0
The copier in the business building usually breaks down five times per month, necessitating a service call that costs on average $ The amount of grief and unrest that a breakdown causes motivates the associate dean to explore a service contract. After extensive research, the associate dean learns that with a service contract, there will typically be one breakdown a month. At what cost for a monthly service contract will the associate dean be indifferent between adopting a breakdown approach to maintenance and purchasing a service contract?
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