Problem: A restaurant is purchasing a new HVAC system. The purchase includes a 1-year parts and labor warranty for $1,079.88. The extended warranty covers 75% of parts and labor costs, as well as routine maintenance service calls. The HVAC system model averages $2,000 per year in repairs and maintenance fees. Does the restaurant save or lose money using the warranty for one year? The restaurant saves about $420 per year using the warranty. The restaurant loses about $420 per year using the warranty. The restaurant saves about $580 per year using the warranty. The restaurant loses about $580 per year using the warranty.