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In this YouTube tutorial, Alejandra discusses the cost and benefits of extended warranties. She explains that 12% of the extended warranty price covers the statistical probability of the item breaking, with the rest going towards salaries, overhead, profit, and marketing fees for the organization selling the warranty. She warns that adding a $1500 extended warranty to a finance plan for a car could result in the dealership making a significant profit, while the average repair cost would only be $180.