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A case study

What is the dollar amount of warranty extensions that Phil sold in January 2013?

  1. Estimate the dollar amount of HDTV sales that he generated in the same month, assuming that he was able to sell warranty extensions in roughly 55% of eligible transactions?
  2. Suppose that the number of HDTV sets sold in 2013 is projected to be 4% more than the number sold in 2012. How much profit can ElectronicCity expect per-store in 2013 from its warranty extension business? (Assume that the average selling price of an HDTV set in 2013 remains the same as in 2012.)

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