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Alik
1 month ago
11

A company that is selling computer tablets has determined that it regularly makes a net profit of $180 for each computer tablet

they sell. The company decides to start a rebate program in which they will give a $30 rebate VISA gift card for anyone that fills out the rebate forms. The actuary at the company predicts that only 18% of the people that purchase their tablets will successfully fill out the paper work and use the $30 rebate. What should the company expect their net profit per tablet sold to drop to after the rebate program? (The company will still earn $180 net profit for most customers)
Mathematics
1 answer:
PIT_PIT [12.4K]1 month ago
6 0

Response:

Based on the anticipated number of individuals completing the form to claim the refund, the company ought to foresee its net profit decreasing to:

  • $174.6 per computer tablet.

Detailed explanation:

Initially, the profit per tablet is $180, but after initiating the rebate program, it is expected that 18% of purchasers will fill out the forms and obtain the VISA card, which will lower the profit as demonstrated below:

  • Calculation of the reduced benefit for 18% of computer tablets = original benefit - refund amount.
  • Reduced benefit for 18% of tablets = $180 - $30 = $150

From here, we find that 18% of tablets will yield a benefit of $150, while the other 82% will maintain a benefit of $180. To ascertain an overall figure for the benefit, we must compute it as follows:

  • Total benefit = Percentage of reimbursed tablets * Benefit of reimbursed tablets + Percentage of non-reimbursed tablets * Benefit of non-reimbursed tablets.
  • Overall profit = 18% * 150 + 82% * 180
  • Overall profit = $174.6

Thus, after the $30 rebate on 18% of the tablets, the total benefit amounts to $174.6.

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Answer:

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