Ace Appliances Sells Dishwashers with a 3-Year Warranty

question 29

Multiple Choice

Ace Appliances sells dishwashers with a 3-year warranty.In 2013,there are $90,000 of sales revenues for dishwashers.The company estimates warranty expense at 3% of revenues.What is the 2013 warranty expense?

• A) $2,700
• B) $800
• C) $0
• D) $3,000

---

Definitions:

Terms

Defined words or expressions with specific meanings within a particular context or field.

Geometric Series

A series of numbers in which every number, starting with the second, is the result of multiplying the one before it by a consistent, non-zero value referred to as the ratio.

Infinite

Something that has no end or limit, often used in mathematics and physics to describe quantities or concepts without bounds.

Geometric Series

An ordered list of numbers where each subsequent number is obtained by multiplying the preceding number by a constant non-zero number known as the ratio.