A Company Sells Leaf Blowers for $170 Each

question 53

Multiple Choice

A company sells leaf blowers for $170 each.Each unit has a three-year warranty that covers replacement of defective parts.It is estimated that 4% of all leaf blowers sold will be returned under the warranty at an average cost of $30 each.During October,the company sold 400,000 leaf blowers; 800 leaf blowers were serviced under the warranty during October at a total cost of $25,000.The balance in the Estimated Warranty Liability account on October 1 was $12,500.What is the company's warranty expense for the month of October?

• A)$24,000
• B)$25,000
• C)$37,500
• D)$467,500
• E)$480,000

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Definitions:

Benner's Practice Model

A framework developed by Patricia Benner that outlines the stages of clinical competence in nursing, emphasizing the importance of experience and intuition in clinical practice.

Clinical Competence

The blend of skills, knowledge, and behavior that enables a healthcare provider to deliver effective patient care.

Technical Skills

Specific abilities and knowledge used to perform practical tasks in various fields such as IT, engineering, or science.

Managed Care

A healthcare delivery system aimed at managing the quality and cost of medical services through contracted arrangements with providers.