KHL Machinery Corporation, a private company following ASPE sold manufacturing equipment for $2,100 each. Each machine carried with it a two-year warranty against manufacturing defects. From experience, KHL Machinery Corporation determined that each machine sold would average $255 in replacement parts. In 2023, the company sold 1,000 machines. Also, in 2023, the company incurred $125,000 in total repair costs (the cost of replacement parts from inventory). KHL Machinery Corporation also sold an extended warranty for its machines. For $450, customers could purchase an extended warranty that extended the warranty on the machine for an additional two years. 800 of the customers that bought machines also purchased the extended warranty. Assume the revenue is earned evenly over the two-year contract.