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:

Level 3 Cache

A type of cache memory in a computer's CPU that is larger and slower than L1 and L2 cache, but faster than main memory, used to reduce the average time to access data.

Level 1 Cache

A type of fast and small memory located within a computer processor to store instructions and data for quick access.

Level 2 Cache

Also known as L2 cache, it is a secondary tier of cache memory that helps improve processing by storing frequently accessed data and instructions.

Cache Memory

A type of fast computer memory that provides high-speed data access to a processor and stores frequently used computer programs, applications, and data.