Broward Company estimated that its warranty expense would be $6,250 for the current year. During the year Broward paid $3,920 to repair merchandise that was returned by customers.Required:a) What is the amount of warranty expense for the current year?b) If this is the first year of operations, what is the amount of warranty liability that will be shown on the balance sheet at the end of the year?
What will be an ideal response?
a) $6,250
b) $6,250 - $3,920 = $2,330 remaining balance in warranties payable
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Inscho Corporation manufactures numerous products, one of which is called Delta10. The company has provided the following data about this product: Unit sales (a) 140,000 Selling price per unit$85.00 Variable cost per unit 53.00 Contribution margin per unit (b)$32.00 Total contribution margin (a) × (b)$4,480,000 Traceable fixed expense 4,030,000 Net operating income$450,000 ?Assume that the total traceable fixed expense does not change. How many units of product Delta10 would Inscho need to sell at a price of $90.95 to earn the same net operating income that it currently earns at a price of $85.00? (Round your answer up to the nearest whole number.)
A. 118,051 B. 106,192 C. 126,000 D. 125,938