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Shear Company Sells Computer Equipment with a 2-Year Warranty

question 32

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Shear Company sells computer equipment with a 2-year warranty. Prior experience indicates that costs associated with this warranty average 1% in the first year and 2% in the second year. In 2021, Shear had sales of $1,800,000. It paid $250,000 for materials and labour to make warranty-related repairs in 2021. What amount should the warranty expense for 2021 be?

Summarize the attributes of high-quality information and its importance in supply chain management (SCM).
Identify the principle supply chain information requirements for effective decision-making.
Compare licensed software and Software as a Service (SaaS) purchasing options.
Recognize common issues in SCM systems integration and the importance of technology and process alignment.

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