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A company sells an electric gardening tool for $100 that costs them $25. The company offers a three-year replacement warranty, no questions asked. Based on
A company sells an electric gardening tool for $100 that costs them $25. The company offers a three-year replacement warranty, no questions asked. Based on previous experience they expect about 2 in every 10 customers to request a replacement. If sales for the year were 20,000 tools, what was the estimated warranty expense for the year? Select answer from the options below $100,000 $400,000 cannot be determined without the per unit warranty cost $10,000
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