JoJo is shopping for a new computer.A mail-order computer can be delivered to JoJo's home for $1,200.JoJo could pick up the same computer at the warehouse for $1,000.How should JoJo decide?
A)JoJo should definitely drive to the warehouse because the monetary cost is $200 lower.
B)JoJo should drive to the warehouse if the value of his travel time plus wear and tear on his car is less than $200.
C)JoJo should definitely have the computer delivered,because the $200 saving is less than 20% of the purchase price.
D)JoJo should definitely drive to the warehouse because the $200 saving is more than 10% of the purchase price.

Question

Quizplus · Accepted Answer

JoJo should consider the cost of his travel time and wear and tear on his car before deciding. If the cost of driving to the warehouse is less than $200, then it would make sense to pick up the computer and save money. However, if the cost of driving to the warehouse is more than $200, then it would be better to have the computer delivered to his home even though it is more expensive. The savings of $200 is not a significant percentage of the purchase price, so it shouldn't be the only deciding factor.

JoJo Is Shopping for a New Computer