A Fast Food Restaurant Just Leased a New Freezer and Food

Multiple Choice

A fast food restaurant just leased a new freezer and food fryer for three years.The service contract for the freezer offers unlimited repairs for a fee of $125 a year plus a $35 service charge for each repair needed.The restaurant's research indicates that during a given year 80% of these freezers need no repairs, 11% needed to be serviced once, 5% twice, 4% three times, and none required more than three repairs.The mean restaurant's annual expense with the service contract for this freezer is ________________________ .

A) $25.20
B) $136.55
C) $122.45
D) $89.90
E) $0