=+50. Extended warranties. A company that manufactures and sells consumer video cameras sells two versions of their
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=+50. Extended warranties. A company that manufactures and sells consumer video cameras sells two versions of their popular hard disk camera, a basic camera for $750, and a deluxe version for $1250. About 75% of customers select the basic camera. Of those, 60% purchase the extended warranty for an additional $200. Of the people who buy the deluxe version, 90% purchase the extended warranty.
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