Power Company sells merchandise with a one year warranty. In 2009, sales consisted of 1,600 units. It is estimated that warranty repairs will average $10 per unit sold, and 30% of the repairs will be made in 2009 and 70% in 2010. In the 2009 income statement, Power should show warranty expense of
A) $4,800
B) $11,200
C) $16,000
D) $0
C
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Recurring costs include all of the following except
a. data conversion b. software maintenance c. insurance d. supplies
The Company is planning to sell Product Z for $20 a unit. Variable costs are $12 a unit and fixed costs are $100,000 . What must total sales be to break even?
a. $266,667 b. $250,000 c. $200,000 d. $166,667
Which of the following is NOT characteristic of Levitt and March’s (1988) conception of organizational learning?
a. Learning is an organization’s adaptation to its environment b. Organizations learn by reinforcing what they know to the point that they become experts – then learning becomes an automatic seamless process c. Organizations learn by turning past experience into routines d. Both a and c
Explain why quantitative data from a research study must be condensed into a manageable size before you can interpret it