A single-unit system is analyzed stochastically by considering the aspects of degradation and feasibility of repair beyond warranty. There is a single repairman who is always available with the system. The repairs during warranty are cost free to the users provided failures are not on their part. The repairman inspects the unit at its failure beyond warranty to see the feasibility of its repair. If repair is not feasible, it is replace by new one. The unit after repair beyond warranty does not work as new and so called a degraded unit. The degraded unit is replaced by new one after its failure. The time to failure of the system follows negative exponential distribution while inspection, repair and replacement time distributions are taken as arbitrary. The expressions for various reliability measures have been determined by adopting supplementary variable technique to carry out profit analysis of the system model