6
QuizMultiple Choice

Warranties

Question 6 • {MDVA} Healthy Living [Semester Only] (M)

A vacuum cleaner costs $68, and the full-replacement extended warranty costs $22. If the manufacturer sells 360,920 vacuum cleaners under warranty and must replace 15% of them to honor the warranties, how much will the replacement costs be?

Answer
A
$4,258,856
B
$3,681,384
C
$1,191,036
D
$6,749,204

Explanation

The manufacturer replaces 15% of 360,920 vacuum cleaners: 360,920 × 0.15 = 54,138 replacements. Each replacement costs $68, so the total replacement cost is 54,138 × $68 = $3,681,384. The correct choice is $3,681,384.

AI-written and checked against the verified answer.

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