Making a decision for warranty

Assignment Help Accounting Basics

Reference no: EM1310024

Your roommate, Jill Blalock, purchased a new portable DVD player just before this school term for $80. Shortly after the semester began, her new DVD player was crushed by an errant “flying plant” during a party at her apartment. Returning the equipment to the retailer, Blalock was informed that the estimated cost of repairs was $65 because the damage was not covered by the manufacturer’s warranty.

Pondering the figures, Blalock was ready to decide to make repairs; after all, she had recently paid $80 for the equipment. However, before making a decision, she asked for your advice.

a. Using concepts from this chapter, prepare a brief presentation outlining factors that Blalock should consider in making her decision.

b. Continue the presentation in (a) by discussing the options Blalock should consider in making her decision. Start by defining a base case against which alternatives can be compared.

Reference no: EM1310024

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