An entity sells goods under warranty and past experience shows that minor ...

An entity sells goods under warranty and past experience shows that minor defects account for 10% of sales and major defects account for 2% of sales. If minor defects were detected in all goods sold the repair costs would be $260 000, and if major defects were detected in all goods sold the repair costs would be $990 000. The expected value of the warranty costs is:

a.

$ 45 800.

b.

$ 0.

c.

$ 19 800.

d.

$ 99 000.

the answer is : A but can someone explain the steps please