Ace company sells printers. Each printer has a 2-year warranty that covers replacement of defective parts. It is estimated that 2% of all printers sold will be returned under the warranty at an average cost of $148 each. During December, the company sold 28,000 printers. What is the company's warranty expense for the month of December?

A) $25,000 B) $56,240 C) $41,440 D) $53,000 E) $82,880