Question
Marjack Computers, Inc. sells and repairs PCs, laptops, tablets, and printers. The company offers its customers a service contract when they buy one of these
Marjack Computers, Inc. sells and repairs PCs, laptops, tablets, and printers. The company offers its customers a service contract when they buy one of these devices from Marjack. The contract allows the customer to bring the device in once a year for the life of the device. Marjack cleans both the hardware and the software, expunging any viruses, installs updates, and performs any other type of maintenance that might be necessary. The price of this service contract varies with the device. The price of the contract for a tablet is $23 per year, and the expected life of a tablet is 3 years. It costs Marjack a $14 per service to perform the annual service required on a tablet. Mr. Geezer purchased a tablet for $112 that cost Marjack $78 and also purchased a 3-year service contract, declaring that he doesnt need the newest thing on the market if the old thing will work. How much did Mr. Geezer contribute to Marjacks profits?
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