At the beginning of 2018, Angel Corporation began offering a two-year warranty on its products. The warranty program was expected to cost Angel 9% of net sales. Net sales made under warranty in 2018 were $208 million. Fifteen percent of the units sold were returned in 2018 and repaired or replaced at a cost of $5.00 million. The amount of warranty expense on Angel's 2018 income statement is:

Multiple Choice

$31.20 million.

$5.00 million.

$22.12 million.

$18.72 million.