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At the beginning of 2016, Angel Corporation began offering a 2-year warranty on its products. The warranty program was expected to cost Angel 4% of
At the beginning of 2016, Angel Corporation began offering a 2-year warranty on its products. The warranty program was expected to cost Angel 4% of net sales. Net sales made under warranty in 2016 were $211 million. Fifteen percent of the units sold were returned in 2016 and repaired or replaced at a cost of $4.50 million. The amount of warranty expense on Angel's 2016 income statement is: |
$31.65 million.
$8.44 million.
$11.84 million.
$4.50 million.
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