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A company wants to sell the following package: A car that comes with an automatic warranty of three years (stand-alone price $50,000). A year
A company wants to sell the following package: A car that comes with an automatic warranty of three years (stand-alone price $50,000). A year of free maintenance (oil changes etc.) (stand-alone price $1,000). An extended warranty for years four and five (stand-alone price $1,000). If they sell this package for $52,000, how much revenue would they record on the day of the sale?
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