An entity offers a 2 year warranty program on all the products is sells. They estimate that warranty costs will equal 2% of sales in the first year of the warranty and 2% of sales in the second year of the warranty. In the first year, total sales amounted to $3750261. Warranty costs incurred to service products under warranty was $31576. What is the warranty expense for the first year? Select one: a. $75005 b. $150010 O c. $31576 d. $118434