Lana Appliances sells dishwashers with a four-year warranty. In 2018, sales revenue for dishwashers is $96,000. The company estimates warranty expense at 4.5% of revenues. What is the 2018 warranty expense? (Round your final answer to the nearest dollar.)
A) $4320
B) $1080
C) $0
D) $3388
A) $4320
Explanation: Sales Revenue $96,000.00
Warranty Expense 4.5%
Warranty expense ($96,000 × 4.5%) $4320
You might also like to view...
The inventory system in which a continuous record is maintained for inventory and cost of goods sold is called
a. FIFO; b. LIFO; c. periodic; d. perpetual; e. weighted average
B & B Manufacturing produces a single product. Last year, the company produced 10,000 units out of which 9,500 were sold. There were no units in beginning inventory. The company had the following costs: Variable costs per unit: Production $6.00 Selling and administrative $2.00 Fixed costs (total): Production $15,000 Selling and administrative $10,000 Refer to the information provided for B & B
Manufacturing. What is the unit product cost using variable costing? A) $ 8.00 B) $ 6.00 C) $ 7.50 D) $10.50
One of the most effective ways to avoid a computer virus is to avoid exchanging floppy disks among computers
Indicate whether the statement is true or false.
All of the following are advantages associated with online focus groups EXCEPT:
A. speed B. cost-effectiveness C. narrow geographic scope D. accessibility E. honesty of respondents