What is the average cost per player?

By admin / April 30, 2020

An audio player uses a low-quality hard drive. The initial cost of building the player is

$50. The hard drive fails after each month of use with probability 1/12. The cost to repair the hard drive is $20. If a 1-year warranty is offered, how much should the manufacturer charge so that the probability of losing money on a player is 1% or less? What is the av- erage cost per player?

Please answer it with all the steps.

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