Assume now that we use the "usual accrual" method to account for warranties during the first 2 years after a sale. However, we also sell an "extended 2-year warranty" for $30 per unit, in addition to the $5k price/unit. Thus, assume we sell 1,000 extended warranties at $30 each in January 2kA. Account for this using the warranty sales method, assuming only 10% of units covered normally need repair during any given 2-year period, and the average cost per repair is $200. What is the expected profit per extended warranty sold? Account for actual extended warranty repair costs of $100k, $150k in years C and D (the extended warranty coverage period).

explanation appreciated