At the beginning of 2018 , Angel Corporation began offering a two-year warranty on its products. The warranty program was expected to cost Angel 5% of net sales. Net sales made under warranty in 2018 were $209 million. Fifteen percent of the units sold were returned in 2018 and repalred or replaced at a cost of $5.10 million. The amount of warranty expense on Angel's 2018 income statement is: $31.35 million. $5.10 million. $10.45 million. $13.85 million