Uni-Go Company Makes Motorized Unicycles

Multiple Choice

Uni-Go Company makes motorized unicycles. Uni-Go is deciding whether to include a safety feature that would cost $6 for each unicycle. Uni-Go estimates the probability of death without the safety feature is 1/90,000 and the death cost per unicycle is $5.55. If Uni-Go has underestimated by one-half the true value of a life, what is the true death cost per unicycle?

A) $3.00
B) $2.78
C) $11.10
D) $12.00