Blossom, Inc, sells iPhones and offers a $2-$year warranty program whereby if the iPhone is broken it will replace the phone for free. Blossom had the following information for $2025$:

iPhone sales $$1,240,000$ in $2025$ and $$2,480,000$ in $2026$

The cost of replacing phones in $2025$ was $$148,800$

The cost of replacing phones in $2026$ was $$372,000$

Blossom expected warranty claims to approximate $10\%$ of sales in the first year and $20\%$ in the second year.