At the beginning of 2018, Angel Corporation began offering a two-year warranty on its products. The warranty program was expected to cost Angel 4% of net sales. Net sales made under warranty in 2018 were $182 million. Fifteen percent of the units sold were returned in 2018 and repaired or replaced at a cost of $4.60 million. The amount of warranty expense on Angel's 2018 income statement is: Multiple Choice $4.60 million. $7.28 million. $27.30 million. $10.68 million.