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:

Customer Appreciation

Activities, rewards, or acknowledgment intended to thank customers for their business, fostering loyalty and enhancing customer relationships.

Career in Sales

Professional progression in the field of selling goods or services, often involving customer interaction, negotiation, and persuasion.

Personality Characteristics

Traits or qualities that define an individual's patterns of thought, behavior, and emotion.

Traveling for Work

The act of moving from one location to another for job-related purposes, often involving visits to different cities or countries for meetings, conferences, or client interactions.