At the beginning of 2013, Angel Corporation began offering a 2-year warranty on its products. The warranty program was expected to cost Angel 8% of net sales. Net sales made under warranty in 2013 were $189 million. Fifteen percent of the units sold were returned in 2013 and repaired or replaced at a cost of $4.80 million. The amount of warranty expense on Angel's 2013 income statement is:

	$15.12 million.
	$18.52 million.
	$4.80 million.
	$28.35 million.