Automobile batteries to perform sufficiently for as long as the person that owned it keeps the car.

Car industry data show that only 20% of car owners retain their cars for 3 years or more.

Data from the past suggest the following data:

# YearsProbability ofBattery Exchange% Failed

OwnedBattery FailureCostsBatteries Returned

Less than 30.2 $5075%

3 or more0.6 $2050%

If 50,000 batteries were sold this year, what is the estimated warranty cost?