A company has a selling price of $2250 each for its printers. Each printer has a 2 year warranty that covers replacement of defective parts. It is estimated that 2% of all printers sold will be returned under the warranty at an average cost of $159 each. During November, the company sold 39,000 printers, and 490 printers were serviced under the warranty at a total cost of $64,000. The balance in the Estimated Warranty Liability account at November 1 was $33,500. What is the company's warranty expense for the month of November?
A. $62,010
B. $124,020
C. $30,500
D. $64,000
E. $77,910
Answer: B
Business
You might also like to view...
A key for developing project cost estimates is to:
A) Cost the project while considering the total package. B) Cost the project on a work package and task basis. C) Cost the project on a major module basis. D) Cost the project and add 33% for contingency.
Business
The price-earnings multiple reflects the growth prospects and riskiness of a firm
Indicate whether the statement is true or false
Business
Professor Dan Ariely's work focuses on the impact of stepping outside ethical norms
Indicate whether the statement is true or false
Business
Describe the two types of franchising systems.
What will be an ideal response?
Business