- Joined
- Jul 18, 2011
- Messages
- 18,484
So, if the accrual was at little/no profit . . . Figuring $3k for 3 year extension and 17% needing repair during the extension period . . .That warranty is an accrual amount, based on about a 17% failure rate, and the average price of the parts and labor
1/(0.17) x $3,000 = $17,647/repair (which seems high)
I figure that there must be a fair amount of profit in the pricing