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Al Arwa LLC manufactures a line of equipment that it sells to wholesalers. The company sold 5,550 items of this type this year, which also
Al Arwa LLC manufactures a line of equipment that it sells to wholesalers. The company sold 5,550 items of this type this year, which also has a one-year guarantee if the equipment fails. Based on experience, 15% of the items sold are returned for repair. In each case, 45% of the items returned can be repaired at a cost of RO150, while the remaining 55% need significant repair at a cost of RO350. What should be the amount of provisions to be made?
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