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The ace company sells another product tha only has a 3 0 days warranty. however, for that product, ace offers a three - year extended

The ace company sells another product tha only has a 30 days warranty. however, for that product, ace offers a three-year extended warranty for the low price of $90. almost all of aces customers(85% to be exact) purchase this extended warranty. during 2024, ace sold 2,000 extended warranties evenly throughout the year and collected $180,000 cash. also, during spent $10,000 to repair products sold under warranty.
account for the extended warranty for 2024 assuming a warranty repairs are expected to be somewhere equal throughout the warranty period, and warranty repairs are expected to be more heavily incurred during the final year, in an approximate 25%,25% and 50% amounts for years 1,2,and 3, of the warranty, respectively.

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