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Arithmetic
Question

The manufacturing cost of an air-conditioning unit $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? (Note: Assume manufacturing costs and replacement costs are the same.)

 

a. $55,158,336

b. $11,457,522

c. $2,129,274

d. $66,717,252

Answer

a. $55,158,336

Solution
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