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ABC manufactures and sells products. On average, warranty costs are 1% of total sales. During 2016, the company's first year of operations, total sales were

ABC manufactures and sells products. On average, warranty costs are 1% of total sales. During 2016, the company's first year of operations, total sales were $750,000 and actual warranty costs were $6,000. What is the total warranty expense that ABC should recognize for 2016?

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