A complete desktop computer costs $965. A replacement monitor costs $238, a replacement hard drive costs $260, a replacement outer case costs $145, labor to repair it costs $77, and shipping it to and from a repair center costs $41. A full warranty, which covers the entire cost of repairing the computer, is 35% of the purchase price. A limited warranty, which only covers internal parts and labor, costs 11% of the purchase price. If the computer tower is damaged, requiring a new hard drive, new case, labor, and shipping, which warranty will be the better deal, and by how much?

Now we are supposed to find . If the computer tower is damaged, requiring a new hard drive, new case, labor, and shipping, which warranty will be the better deal, and by how much?

So, Deal 1 : A full warranty, which covers the entire cost of repairing the computer, is 35% of the purchase price.

So, 35 % of purchasing cost = 35 % of 965 = [tex]\frac{35}{100} \times 965=337.75[/tex]

So, cost according to deal 1 = 965+337.5= 1302.75

Deal 2: A limited warranty, which only covers internal parts and labor, costs 11% of the purchase price.

Since the internal part is hard drive

S.o, 11 % of cost of hard drive = 11% of 260 = [tex]\frac{1}{100} \times 260=28.6[/tex]

So, cost according to deal 2 = 28.6+260+145+77+41=551.6

Hence deal 2 is appropriate.