6-Patriot Fanbase, Inc. sells those fun foam fingers fans use at their football games. At the beginning of 2024, Patriot started offering a two-year warranty on its products (those fingers can break you know!). The warranty program was expected to cost Patriot Fanbase 7% of net sales. Net sales made under warranty in 2024 were $218 million. Fifteen percent of the units sold were returned in 2024 and repaired or replaced at a cost of $4.90 million. The amount of warranty expense on Patriot Fanbases 2024 income statement is:

Multiple Choice $15.26 million. $18.66 million. $4.90 million. $32.70 million.