Question

Exco r ds and each unit comes a two-year replacement warranty. Typical 5% of the radio sed need to be replaced conting Exco 321 purrado Daring September, Excom sold 360 radios for $51 each for what amount in September would com debit Product Warranty Expense Round your answer to the nearest whole dollar a $19,360 $51 6523 d. 8414

Answer 1

Answer is d.$414

Calculations:

Warranty expense for September = (Sales units x Estimated % of replacement ) x cost per unit

= (360 radios x 5%) x $23

=18 radios x $23

=$414