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ABC appliance sells its appliances with or without an optional service plan coverage. The service plan coverage is a 10% premium on the base product
ABC appliance sells its appliances with or without an optional service plan coverage. The service plan coverage is a 10% premium on the base product price. ABC is deciding whether to continue this optional plan. By using a Sell or Process further model, which products should be sold with the optional plan and which should be only sold at the base price alone (i.e., no service plan offered)? Base selling price VC CM % Washer $600 ($400) $200 33.3% Oven $400 ($300) $100 25.0% Dishwasher $300 ($250) $50 16.7% Selling price with service plan option (+10%) Actual average cost of service $660 $40 $440 $50 $330 $35 What options would you consider for the service plan
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