5/No Rust' car sales provide a one-year labour and parts warranty with every car sold. It is expected that 2000 cars will be sold for the year. Past records show that about 5% of cars require warranty repairs at an average cost of $500 per car and additional 2% of cars require warranty repairs at an average cost of $1000 per car. How much provision need to be created for the future warranty expense? Select one: a. $90000 b. $16000 c. $70000 d. $50000