A Company Sells Computers at a Selling Price of $1,800

question 110

Multiple Choice

A company sells computers at a selling price of $1,800 each. Each computer has a 2 year warranty that covers replacement of defective parts. It is estimated that 2% of all computers sold will be returned under the warranty at an average cost of $150 each. During November, the company sold 30,000 computers, and 400 computers were serviced under the warranty at a total cost of $55,000. The balance in the Estimated Warranty Liability account at November 1 was $29,000. What is the company's warranty expense for the month of November?

• A) $26,000
• B) $45,000
• C) $55,000
• D) $60,000
• E) $90,000

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Definitions:

Permanent Workforce

Employees who are hired on an indefinite basis, offering stability and long-term employment benefits within an organization.

Flextime Employees

Workers who have flexible work schedules, allowing them to vary their arrival and departure times as long as they complete their working hours.

Line Managers

Managers who directly contribute to producing the organization’s goods or services.

Mental Disabilities

A range of conditions that affect mood, thinking, and behavior, potentially impacting an individual's ability to function in various aspects of life.