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To estimate the warranty expense for a company, we need to know three main things: Number of units sold during a particular accounting period. Percentage of the sold products that will probably need a repair or a replacement based on previous experiences. Average cost of repairing or replacing products under warranty.

Compare the specifics of the plans you're considering to find one that matches your needs. How long is coverage available? Extended warranty plans typically cover your vehicle anywhere from 2 to 7 years. If you expect to keep your car for several years, a longer plan may make sense for you.

Powertrain Extended Car Warranty Costs Warranty CompanyPowertrain WarrantyTotal CostEndurance Check PriceSecure for 5 years/100,000 miles$3,468Carchex Check PriceSilver for 5 years/75,000 miles$2,952CarShield Check PriceGold for month-to-monthVariesProtect My Car Learn MoreDriveline for 4 years/70,000 miles$3,1771 more row ?

An extended warranty price represents a percentage of the total product cost. As a general rule of thumb, you shouldn't spend more than 30% of the product cost on a product warranty.

An extended warranty price represents a percentage of the total product cost. As a general rule of thumb, you shouldn't spend more than 30% of the product cost on a product warranty.

To estimate the warranty expense for a company, we need to know three main things: Number of units sold during a particular accounting period. Percentage of the sold products that will probably need a repair or a replacement based on previous experiences. Average cost of repairing or replacing products under warranty.

By my calculations, a product with a 1 year warranty will be covered for 1 year. 1=1. Or 1 year=12 months=365 days=8760 hours. One with a 90 day warranty will be covered for 90 days.

How to calculate warranty expenses Find the total number of products sold. ... Determine the percentage of defective products. ... Calculate the number of products needing replacement. ... Evaluate the cost of product replacement. ... Estimate the total warranty expense.