The profit which the manufacturer gained from the warranties is a. $105,430,050
Calculations and Parameters:
Given that count 12% of 532,475:
532,475 - 100%
x - 12%
x= 63, 897.
This means that 63, 897 guitars were sold with a full-replacement warranty and 532,475-63,897=468,578 electric guitars were sold without a full-replacement warranty.
Hence, to find the gain of the manufacturer, $225·468,578
=$105,430,050 from the warranties.
Option A is correct: $105,430,050
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