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Current Attempt in Progress AWM Corp. manufactures a wide range of equipment. The company's biggest seller is the Whatchamacallit, which sells for $ 4 ,
Current Attempt in Progress
AWM Corp. manufactures a wide range of equipment. The company's biggest seller is the Whatchamacallit, which sells for $ each. Starting in each Whatchamacallit now carries with it a twoyear warranty against manufacturing defects. In addition to this warranty, customers can purchase an optional extended warranty for $ extra that extends the Whatchamacallit's warranty an additional two years. From experience with similar products, AWM Corp. has dtermined that each Whatchamacallit sold will average $ in replacement parts ignore labour costs for repairs In the company sells Whatchamacallits; of these customers decide to purchase the optional extended warranty. Assume the revenue is earned evenly over the twoyear contract. Also in the company incurrect $ in total repair costs replacement parts out of inventory
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