Tacloban Company owns a car dealership that it uses for servicing cars under warranty. The entity's experience with warranty claims is that 60% of all cars sold in a year have a zero defect, 25% of all cars sold in a year have normal defect, and 15% of all cars sold in a year have significant defect.

The cost rectifying a 'normal defect' in a car is 10,000. The cost rectifying a 'significant defect' in a car is 30,000. The entity sold 500 cars during the year.

What is the expected value of the provision for warranty for the current year?

a. 250,000

b. 350,000

c. 900,000

d. 750,000