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:

Operant Conditioning

A learning process where behavior is controlled by consequences, including rewards or punishments.

Extinction

In behavioral psychology, the gradual weakening and eventual disappearance of a conditioned response when the conditioned stimulus is no longer paired with the unconditioned stimulus.

Modeling

A technique in behavioral psychology where individuals learn through observation and imitation of others.

Classical Conditioning

A learning procedure where two stimuli are constantly paired; initially, the second stimulus elicits a response which eventually is elicited by the first stimulus alone.