Lager Company sells merchandise with a one year warranty. In 2013, 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 2013 and 70% in 2014 . In the 2013 income statement, Lager should show warranty expense of
a. $4,800
b. $11,200
c. $16,000
d. $0
e. $8,000
C
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The University of California–Los Angeles has a Statistical Calculators page that includes almost every type of calculator table you will need through any statistics course you might take.