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Author Question: A fast food restaurant just leased a new freezer and food fryer for three years. The service ... (Read 89 times)

panfilo

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A fast food restaurant just leased a new freezer and food fryer for three years. The service contract for the freezer offers unlimited repairs for a fee of $125 a year plus a $35 service charge for each repair needed. The restaurant's research suggested that during a given year 80% of these freezers need no repairs, 11% needed to be serviced once, 5% twice, 4% three times, and none required more than three repairs.

How many times should the restaurant expect to have to get this freezer repaired over the three-year term of the lease?


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Marked as best answer by panfilo on Aug 31, 2019

Joy Chen

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Joy Chen

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