When you buy a set of speakers, best buy asks if you would like to purchase insurance for your speakers. assume that paying for new speakers for customers who listen to music at a reasonable level (thus minimizing damage) costs on average $150, and paying for new speakers for customers who listen to music very loudly (more likely to damage the speakers) costs on average $1000. individual know whether they like music at a reasonable level or at a loud level, but best buy can assume that 40% of listeners are reasonable listeners, and 60% are loud listeners. how much does best buy have to charge in order to break even?
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