Fail-Safe Computer Inc

question 37

Multiple Choice

Fail-Safe Computer Inc. sells equipment with a 2-year warranty. Prior experience indicates that costs for warranty repairs average 3% in the first year, and 2% in the second year. Sales were $300,000 and $400,000 in fiscal 2019 and 2020 respectively. It paid $5,000 for materials and labour to make warranty-related repairs in 2019. What amount will be recorded as warranty expense in 2019?

• A)$5,000
• B)$12,000
• C)$15,000
• D)$18,000

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Definitions:

Opening Phase

The initial stage in a process or activity, marking the beginning and setting the foundation.

Verbal Probes

Questions or statements used to elicit more detailed responses or information in a conversation.

Nonverbal Probes

Nonverbal probes are gestures or actions nonverbally carried out to elicit a response or gather information from someone without using words.

Interview

A formal or informal conversation where questions are asked to obtain information from a participant.