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A manufacturing company sells its main product with a three - year warranty against defects. The company expects that 6 % of the units sold

A manufacturing company sells its main product with a three-year warranty against defects. The company expects that 6% of the units sold will prove to be defective during the warranty period. Management expects warranty claims will be even over the three-year warranty period. The average cost to repair or replace a defective unit under the warranty is expected to be $58.
The company's sales and warranty costs incurred in its first three years were as follows:
\table[[,Units Sold,\table[[Actual Costs of Repairs],[and Replacements under],[the Warranty Plan]]],[2018,9,600,$4,300
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