Adventure Camera Co. was organized to sell a single product that carries a 45-day warranty against defects. Engineering estimates indicate that 2% of the units sold will prove defective and require an average repair cost of $45 per unit. During Adventure's first month of operations, total sales were 900 units; by the end of the month, 5 defective units had been repaired. The liability for product warranties at month-end should be A. $225. B. $1,035. C. $585. D. $810. O E. none of these.