The manufacturing cost of an air-condioning unit is $544, and the full-replacement extended warranty costs $113. If the manufacturer sells 506,970 units with extended warranties and must replace 20% of them as a result, how much will the replacement costs be?
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Answer:
$66,592,206
Step-by-step explanation:
- Cost of unit- $544
- Warranty- $113
- Replacement cost- 20%
- Number of units- 506970
- Total replacement cost- ?
Total replacement cost=506970*($544+$113)/5=
506790*$657/5=$66,592,206
Hope it helps
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