# 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? (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

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## Question:

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? (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