Final answer:
For scenario 1, repair the transmission since the net gain with repair ($5900) is higher than without ($5700). For scenario 2, do not repair as the net gain without repair ($5500) is higher than with repair ($5400).
Step-by-step explanation:
To determine whether it is financially better to repair the transmission or sell the car "as is," we will calculate the net gain for each scenario.
Scenario 1:
- Selling price with a working transmission: $6500
- Repair cost: $600
- Net gain if repaired: $6500 - $600 = $5900
- Selling price without repair: $5700
- Net gain without repair: $5700
Since $5900 (with repair) is more than $5700 (without repair), the answer is A. Yes, have the transmission repaired.
Scenario 2:
- Selling price with a working transmission: $6000
- Repair cost: $600
- Net gain if repaired: $6000 - $600 = $5400
- Selling price without repair: $5500
- Net gain without repair: $5500
In this case, $5400 (with repair) is less than $5500 (without repair), so the answer is B. No, do not repair the transmission.