Ace company sells printers. Each printer has a 2-year warranty that covers replacement of defective parts. It is estimated that 3% of all printers sold will be returned under the warranty at an average cost of $155 each. During December, the company sold 35,000 printers. What is the company's warranty expense for the month of December?

Multiple Choice

• $60,000

• $81,375

• $28,500

• $162,750

• $69,750