A Company Has a Selling Price of $1,800 Each for Its

question 132

Multiple Choice

A company has a selling price of $1,800 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 $150 each.During November,the company sold 30,000 printers,and 400 printers were serviced under the warranty at a total cost of $55,000.The balance in the Estimated Warranty Liability account at November 1 was $29,000.What is the company's warranty expense for the month of November?

• A)$26,000
• B)$45,000
• C)$55,000
• D)$60,000
• E)$90,000

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Definitions:

Order Fulfillment Department

The division within a company responsible for processing and delivering orders to customers, ensuring product delivery aligns with customer expectations.

Capacity Analysis

The evaluation of a company's ability to meet its production goals with the available resources and facilities.

Time-Driven Activity-Based Costing

A costing method that estimates the costs of resources used in business activities, based on the time those activities take and the rate at which resources are consumed.

Customer Service Department

A functional unit within a business that handles customer inquiries, complaints, and facilitates after-sales support.