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A bicycle manufacturer knows that about 11 out of every 200 of a certain type of bicycle will be returned for repair under warranty. For
A bicycle manufacturer knows that about 11 out of every 200 of a certain type of bicycle will be returned for repair under warranty. For each bicycle that is not returned under warranty, the manufacturer makes $15, but for each bike that is returned under warranty, it loses $120 (to repair or replace the bicycle). What is the manufacturer's long-term average profit per bicycle on this type of bicycle?
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