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In response to competitive pressures for the Internet access service for Bundle A, at the end of the second year of the 4-year contract, Tablet
In response to competitive pressures for the Internet access service for Bundle A, at the end of the second year of the 4-year contract, Tablet Tailors offers a modified contract and extension incentive. The extended contract services are similar to those provided in the first 2 years of the contract. Signing the extension and paying $150 (which equals the fair value of the revised service package) extends access for 2 more years of Internet connection. Assuming 35 Bundle A customers sign up for this offer.
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